Preparing Your Business for Hurricanes & More: Tips for Building Your Disaster Recovery Plan

June marks the start of Hurricane Season so it is important to take steps today to protect your business from any potential damage. When you are in the middle of a crisis, it is challenging to think clearly so even if your business is not physically located in an area that is normally associated with hurricanes, keep reading. After all, hurricanes can cause supply chain issues, airport closings, power outages, not to mention you may have key vendors located in the path of the storm. A major storm can cause a disruption to your business.

Creating a Disaster Recovery Plan for Your Business 

The most important item on our list is to take the time to create a disaster recovery plan. 40 percent of companies do not reopen after a disaster, according to the Federal Emergency Management Agency (FEMA), and another 25 percent fail within one year. A disaster recovery plan is essential so that your business can successfully navigate the aftermath. Below are some steps to take as you work to create a Disaster Recovery plan for your business.

• The first thing you need to do is to analyze your business. Look at your leadership structure, communication chain, insurance coverage and any existing plans. Make any necessary updates.
• Create a detailed list of your daily operations and make sure your entire team are aware of their specific responsibilities.
• Identify an alternative location to run your business from should your current space become unavailable. Are your employees able to work from home? Do you have an infrastructure in place to ensure a seamless transition? Take steps to get that in place so that you have a backup plan in place.
• Develop a plan to secure your technology and data. Make sure that all your staff members are aware of the plan.
• Create a comprehensive safety plan. Consider places to hide, evacuation routes, first aid policies and procedures. It is very important to communicate your safety plan with your entire team. Knowing what to do in any situation will help your team feel more prepared and they will be less likely to panic should a disaster occur.

Gathering Documentation for Your Business to Prepare for a Hurricane 

Create documentation so that your crisis plan is on hand to refer to should an unexpected crisis occur. Items that should be included in your plan include:

• Details on how, when and what to communicate to staff members, customers, and local media if necessary.
• Copies of any important documents you may need as you navigate the recovery process including insurance coverage.
• A master document with important numbers and contact information for members of your team.
• A breakdown of all policies and procedures to follow, including incident-specific instructions for different scenarios like what to do in a hurricane vs. a terrorist attack.
• A clear leadership hierarchy if some staff members are unavailable during a crisis.
• A regular training schedule to ensure all staff members are familiar with the current plan and prepared for a crisis.
• Keep hard copies of your key company contacts, your client contact list, and your disaster recovery plan accessible outside of your computer system.

Protecting Your Business Assets in an Emergency 

Make sure your assets are safe. If you have inventory or equipment that is stored in a location that makes it vulnerable to damage, move it to a safer location if possible. Additionally, take all the necessary safety precautions to ensure that your buildings and personal property will be protected in the event of a tropical storm or hurricane.

Business Interruption Insurance 

Business interruption insurance is an insurance coverage that can help to replace a portion of a business’s income in the event a covered peril occurs and causes a business to pause operations or temporarily relocate. It is important to note that business interruption insurance works with your commercial property insurance. For example, in the event that a fire, natural disaster, or theft, causes physical damage to your business’s property, your commercial property insurance may cover the costs of repair. 

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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.