The recent Queensland and NSW floods have seen many shops and businesses devastated again for the second time in little over 10 years. It calls to mind a discussion on what you should do in case you find yourself in the situation of your business being destroyed.
Step 1 - Assess and Photograph
As soon as it is safe to visit your business, and before you begin clean-up, take photos of the condition. Photograph the outside, the inside, your stock and equipment. Although insurers may want to carry out their own assessment, this may be of assistance in case of dispute and as evidence to provide to anyone else, like your landlord, equipment supplier or other parties.
Step 2 - Call your Landlord
If you are leasing your premises, you may find your landlord is the first person to call you. Even if not, you should contact your landlord immediately and advise what has occurred.
Nearly all leases contain a 'damage and destruction clause' that applies in case of a fire, flood, accident or disaster that makes your premises substantially inaccessible or unusable. Look for this clause in your lease, so you know your rights.
The landlord is responsible for assessing the building, including all structural elements, including the roof. The landlord must notify you whether the landlord will repair the building or condemn the building and terminate your lease.
In most cases, unless the damage was caused or contributed to by you, you will be entitled to a rent abatement (which means you will not need to pay rent) for the period during which the premises are inaccessible or unusable including any clean up period.
Additionally, if the landlord fails to give you a notice as to what the landlord will do, or otherwise fails to repair the building within a reasonable time, you will be entitled to terminate your lease without penalty.
In some cases, there are no structural repairs required by the landlord, and the damage is to your fit-out and stock, which is your responsibility. In other cases, the premises may be so damaged that the landlord chooses to condemn the building and terminate your lease.
We recommend that you go through this process and obtain written confirmation from the landlord before you begin investing money in purchasing a new fit-out.
If you are reading this article about a home that you are renting, be aware that residential leasing is entirely different from commercial leasing. Seek legal advice or contact the Residential Tenancies Authority to find out your rights.
Step 3 - Call your Insurer
Before you begin cleaning up and disposing of property, you must call your insurance company and follow the procedures to file your insurance claim because your insurer may want to come out and assess the damage before you clean up.
Most insurance companies are trained to guide you through the process and provide you with all the information you need, but just in case, we recommend you cover the following issues:
- The procedure to file a claim
- When you can start cleaning up
- When you can throw out any property
- If you are required to take photos
- When the assessor will arrive
- What is the likely period to process your claim and receive payment or repair services
- When will the insurer contact you next
Write down the insurer's instructions, and make sure you ask for a reference number for your call.
Step 4 - Call your Equipment Lessors
If you are leasing equipment or it is under finance, you should contact the equipment lessor.
In some cases, you are responsible for loss or damage to the equipment under your insurance. In some other cases, the equipment lessor has been insuring the equipment and will provide a replacement.
It is important to find out what your rights are, and we recommend you do this in advance, as damage and destruction can be a cause for immediate termination and request for payment of the total value of the equipment immediately, so it is important that you know your rights and obligations. Seek legal advice if unsure.
Step 5 - Call your Suppliers and Customers
Think about what stock and equipment orders you have arriving and call your suppliers if you need to put a stop on orders. If you have undertaken to supply products or services to a customer, be sure to call those customers and address those orders or bookings.
Some contracts contain a 'force majeure clause' that can be used to avoid a legal obligation in case of an external event you could not control. Note that this is not a legal right, it is only available if it exists in your contract and it is restricted to its terms. Be sure to read the whole of your contract, as your contract may contain other terms that can be used for suspension or termination. Obtain legal advice if unsure.
Step 6 - Research the Help Available
There will be help available from the government and many charitable associations in case of emergency and natural disaster, and it's OK to use it.
Clean up assistance
Your local government (Council) looks after waste services and will likely be coordinating clean up efforts.
For the Brisbane floods, Brisbane City Council 'mud army 2.0' and waste and clean up services - visit www.brisbane.qld.gov.au
Food and necessities
Food and necessities are often coordinated by charitable institutions such as the Salvation Army, Vinnies, Wesley Mission (Foodbank.org.au).
In Brisbane is currently located the Brisbane Relief Hub at 316 St Pauls Terrace, Fortitude Valley.
In Ipswich, consider Ipswich Assist located at 21 South St, Ipswich.
Emotional and psychological support
Emotional support is available through a number of hotlines including Lifeline (13 11 14) and Beyondblue (1300 22 4636).
Medicare rebates are also available to cover the cost of some private counselling services.
Disaster relief payments
The following disaster relief payments are currently available for Queensland residents in the South-East Queensland Floods of 2022:
Australian Government Disaster Recovery Payment - A lump sum of $1000 per adult and $400 per child. Must be in one of the affected regions listed. Must claim before 28 August 2022. This is also available for NSW.
Australian Disaster Recovery Allowance - Short term income support for affected individuals. Must earn less than average Australian weekly income (currently $1,737.10) in the weeks following the event.
Queensland emergency hardship assistance - $180 per person, up to $900 for a family of five or more. Claim within 7 days following the activation of the grant in your area. If you are unable to meet essential food, clothing, medical supplies or need temporary accommodation.
Queensland essential household contents grant - Up to $10,995 for single adults and up to $14,685 for couples or families (means tested). If you are uninsured or unable to claim.
Queensland structural assistance grant - Up to $10,995 for single adults and up to $14,685 for couples or families (means tested). If you own or are the mortgagee of a home, caravan or boat, you were living in it as your principal place of resident at the time of disaster, and you are uninsured or unable to claim.
Queensland services safety and reconnection grant - Up to $200 towards inspection and up to $4200 towards repair of essential services (electricity, gas, water and sewerage or septic), means tested. If you are the owner or mortgagee of the home and are uninsured or unable to claim.
For NSW residents, refer to the NSW counterpart of most of these payments by going to the Australian Government Services Australia page and the NSW Government Floods Financial Assistance page.
Step 7 - Consider if you Need to Suspend your Mortgage and Bills
All major banks have agreed to give a 3-month hold on payments for individuals affected by the Queensland and NSW floods of 2022. Contact your bank to discuss this and other options.
Standard hardship relief, which includes suspension, delay or reduction of payments, is available at all times in many circumstances for consumer mortgages and commercial mortgages in some cases, as well as electricity, gas, internet, council rates, water, and other services you may be paying for.
Step 8 - Do you Need Access to you Superannuation?
Hardship superannuation withdrawal is always available if you are suffering severe hardship. You will be required to meet certain conditions. Contact your superannuation fund or obtain legal advice.
Step 9 - Get Legal Advice
If you require or could benefit from legal advice in connection with your emergency, do speak to your lawyer. Many lawyers offer free initial consultations. Depending on your needs you may qualify for pro-bono (free) legal aid or no win no fee services.
Bennett & Philp Lawyers are always available to help. You may contact us on 07 3001 2999 or live chat to us on our website.
Step 10 - Help Others
If you are able to help someone else do so!
Find out ways you can help by visiting the Queensland Government Emergency Help site.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
