Cyclone Alfred hit a 500 km stretch of Queensland and the NT in early March, cutting power to over 240,000 properties and damaging homes, commercial buildings, and infrastructure.
The Insurance Council of Australia (ICA) declared an insurance catastrophe, with thousands of claims already flowing in from small business owners and property investors. About 70,000 insurance claims are likely, says the council.
If you’re still sorting through the fallout, here’s what to do next. If you dodged this one, use these tips to prep for the next.
The toll on businesses and the economy
From cafés and corner shops to warehousing and tradie depots, Cyclone Alfred disrupted operations across the board. Many businesses are still closed due to power outages, building damage, and major supply chain snags. In mid-March tourism operators, such as on the Fraser Coast, were facing mass cancellations in the lead-up to Easter.
You might not think the cyclone had much impact on the agricultural sector, but it did. For example, road and sea freight operations were paused across northern NSW and southern Queensland, preventing beef and pork exporters from moving their stock. At the same time, supply chains for vegetables, fresh fruit, milk, and bread were disrupted in and out of the region. Meanwhile, in the cyclone’s wake, there were reports late last month of thousands of dead fish in rivers.
The Queensland Government estimates a $1.2 billion hit to the state’s economy – that is taxpayers. Meanwhile, the Cyclone Reinsurance Pool will pay out a further $1.7 billion. To put in another way, 12 million hours of work were lost due to the cyclone. Inflation will also take a hat, forewarned Federal Treasurer Dr Jim Chalmers.
Rising costs for materials, insurance, fresh produce, and fuel are slowing recovery—and the effects will ripple nationwide as supply chains adjust.
Insurance gaps and
common claim issues
Many property owners and businesses are now discovering coverage gaps. Home insurance usually includes storm damage—but not always flood. Flood protection is often optional and easily overlooked.
Some are finding their policies exclude storm surge or water ingress, both common in cyclones. Business interruption cover can provide vital support, but only if your policy includes flood-related disruptions. Even then, it may not cover outages due to damaged infrastructure if your site wasn’t directly affected.
Underinsurance is another growing issue. The ICA says many SMEs don’t realise their cover won’t stretch to full rebuild or replacement costs after a major disaster.
Steps to take now
As clean-up continues, now’s the time to focus on paperwork and risk planning. Acting early can speed recovery and cut future risk.
Here’s what to prioritise:
Lodge claims quickly:
Time matters. Late claims can be delayed or rejected
Document everything:
Take photos, keep receipts and make a written inventory of damage
Review your policy:
Look for exclusions related to floods, storm surges and business loss
Check landlord responsibilities:
If you lease your premises, confirm who covers what in your lease agreement
Explore government support:
Disaster payments and grants are available in some regions
Start building resilience:
From generators to digital backups, prepare for future interruptions.
Alfred is a wake-up call for risk management
As climate events intensify, sea temperatures rise, and storms and cyclones become increasingly more destructive, the insurance landscape is shifting. Cyclone Alfred has exposed how many businesses and property owners are unknowingly under protected.
Three in five Australians affected by recent floods thought they had the right cover—but found their policies excluded events like flash flooding or storm surge. As premiums climb and disasters become more frequent, now’s the time to rethink your risk approach.
As your broker or adviser, we can work with you to review your policy, identify gaps, and make sure it aligns with your risk profile. Whether you own a shopfront, warehouse, franchise, or block of units, the right protection can make all the difference.
Let’s get your business cyclone-ready—before the next one hits.
