US commercial property insurer FM Global has published a guide to help clients in Australia protect their idled facilities during this coronavirus outbreak.

The guide covers a range of areas including fire and flood protections and will help reduce the risk exposure facing clients while government restrictions on non-essential activities remain in place until the public health crisis is over.

“One of the major risks is that businesses may suffer losses due to damage to major facilities having to be shut down and left idle for a period of time,” FM Global Australia Operations Manager Lynette Schultheis told insuranceNEWS.com.au.

“The key message is that while losses that might be experienced while a facility is idled may be covered by an insurance provider, by omitting to take these preventative steps businesses could see even greater losses.

“As with any loss, we believe majority of losses to idle facilities are preventable and can be mitigated by taking the measures we’ve outlined, and we are advising our clients in Australia of the same.”

The measures will also help clients resume normal operations once the restrictions are lifted, FM Global says. One of the measures relates to maintenance and this is an area that should not be overlooked even during the current crisis.

The insurer says this is an ideal time to perform overdue maintenance works. Delaying repairs to machinery or fixing a small roof leak could hinder a firm’s reopening plans or hurt profitability.

“For example, ongoing social distancing measures and supply chain issues may make it harder to undergo needed repairs or replace damaged equipment if losses do occur,” Ms Schultheis told insuranceNEWS.com.au. “This could significantly impact a company’s ability to rebound once we move into the recovery phase of the COVID-19 pandemic.

“The key message is that it’s important to prepare for this eventuality now, even if it is as yet unclear if a facility will have to be idled. The situation continues to evolve rapidly.”