Business owners - is your company ready to act if there is a natural disaster? According to Assurex Global, there is a good chance it is not. The insurance firm surveyed brokers from around the world and found that over a third of all companies in Asia and the Pacific are just not prepared.

Of course, the study looks at businesses over the entire Asia/Pacific region. It doesn't look at Australia as a whole, and there are developing countries that are causing some those high figures. But some stark details should cause concern. Australia, of course, is liable to suffer from many different disasters, from bushfires to sudden cyclones. And the cost to the nation’s economy - not to mention the loss of life - is more than many people first believed. Figures from March revealed those costs to be more than 50% above previous estimates and are now expected to reach $33 billion a year by 2050.

The Assurex report also suggests several areas where businesses should be focusing their attention. 60% of survey respondents feel that a lack of continuity planning was a major issue. Almost four out of ten felt they lacked the right coverage for insurance. And well over a third said that many of the issues stemmed from a lack of support for leadership teams.

There is also a question of leadership from governments all over the world. Sadly, the Asian and Pacific regions figures were particularly weak. Almost seven out of ten respondents suggested there was a lack of government and civil infrastructure to deal with disasters. Compare this to 13% in the United States and Canada and you can see where problems might lie.

If you're a business owner, there are a few things to look at. Make sure you have robust strategies in place for dealing with disasters. Safety drills might draw sighs from your employees, but practice makes perfect. You should also ensure you are carrying out regular safety audits to ensure equipment is in good working order. For example, making sure you have all the different types of fire extinguishers in place will cover any eventuality. A small fire can quickly become a big disaster - and have even been the cause for many bushfires.

Insurance coverage is also crucial. A single disaster can cause all kinds of havoc to unprepared companies. Continuity is under threat, and, of course, the sheer cost of repair and starting over can be a disaster within itself. Bear in mind that the vast majority of Australian companies are underinsured. Coverage should be the first thing for bosses to investigate to make sure they are prepared.

There are other costs to consider, too. While a disaster can affect businesses and communities in a direct way, the aftermath is also a big issue. Take the Queensland floods of 2011-12 as a good example. The floods exacerbated symptoms of diabetes, stroke, and cardiovascular disease to the tune of $430 million. Mental health issues caused by the floods are expected to cost the economy almost $6 billion over the lifetimes of the victims. They have also led to a rise in incidents of domestic violence. It’s clear that these matters will affect every business, whether they are in the centre of the disaster or not.

With climate change expected to cause more problems in the future, Australian companies sound like they need to do a lot more today.