Tornadoes, Hurricanes, Fires…Is Your Business Prepared?
Posted on Tue, Jun 14, 2011
As many as 19 communities reported damage after two powerful tornadoes recently ripped through Massachusetts. The twisters downed power lines, caused property damage to homes and businesses, and resulted in 4 fatalities. Is your business prepared to deal with a local, regional or even national disaster?
As we deal with the hustle and bustle of our daily responsibilities, it is often easy to overlook the potential risks our business faces that could close our doors temporarily, resulting in lost income or even permanent closure.
Large-scale natural disasters are not the only threats to business shut down. Even a temporary regional power outage could force your business to stop, if you don’t have a plan in place that addresses how you will continue working under those conditions. Conversely, what would happen if one of your primary suppliers is suddenly unavailable and can’t deliver the goods you depend on to service your customers?
Business owners should prepare for the possibility of a disaster by reviewing the following tips.
- Record vital information such as employees (including owners), suppliers, vendors and key contacts.
- Make back-up copies of all tax, accounting payroll and production records and customer data on computer hard drives, and store the records at an offsite location at least 100 miles away. Important documents should be stored in fireproof safe deposit boxes.
- Determine escape routes from the business and establish meeting places. Make sure everyone understands the emergency plan before the need to use it arises.
- Designate a contact person to communicate with other employees, customers and vendors.
- Determine what production machinery, computers and other essential equipment is needed to keep your business open. Store extra supplies offsite.
- Be ready for utility disruptions with a portable generator.
- Make a plan for an alternate location if your business is forced to relocate after a disaster.
- Review your insurance coverage to make sure you understand what is not covered. Most policies don’t cover flood damage.
- Consider business interruption insurance. It covers operating expenses, like utilities, and compensates you for the income lost after a temporary closure.
- Develop a post-disaster communications strategy. Keep current phone numbers for your suppliers, employees, customers, utility companies. Local media and emergency agencies.
Once your plan is complete, create multiple copies in print and online. Some people keep an extra encrypted backup copy on a computer flash drive on a key chain. Experts recommend updating the plan at least once a year.