4 Disaster Preparation Tips You Need to Know

posted by Jamie Badger on Thursday, May 26th, 2016

Disaster Preparation

According to the U.S. Small Business Administration, “an estimated 25 percent of businesses do not reopen following a major disaster.”

While you cannot control the probability of disasters like tornados affecting your business, you can be prepared and ready to respond should a natural or man-made disaster occur. In fact, having a disaster plan in place could make the difference between being a business that closes permanently after a disaster and being a business that can quickly reopen.

So how can your business prepare for a disaster? You can start by taking the following steps:

1. List all of the potential emergencies and disasters that your business could encounter

This list should include internal, external, natural, man-made, product or personnel emergencies and disasters.

2. Create a disaster plan

A few examples of what to include in your plan are: employee contact information, bank, insurance and leasing information, customer information, back-up data and any information that is vital for business operations.

For help developing your plan, visit ready.gov to view a sample Business Continuity and Disaster Preparedness Plan.

Remember, disaster plans should be able to accommodate all of the situations in your list of potential emergencies and disasters.

3. Prepare to use your disaster plan

Having a disaster plan is great, but you also need to be prepared to put the plan in place should a disaster occur. In order to do this, your business should have multiple copies of the plan that are easily accessible, and there should be at least one plan stored both onsite and offsite.

Additionally, employees should be familiar with the plan and trained on the steps to take should a disaster occur. Lastly, in order to keep plans relevant they need to be regularly maintained and updated as necessary.

4. Talk with your insurance agent

As with other policies, it is important to talk through the specific needs of your business with an insurance agent. Business interruption insurance should be discussed in this conversation since it can help replace lost income if a business is shut down as the result of a covered event.

For more information on disaster plans contact Professional Solutions Insurance Services, we would be happy to help. 

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