Tips for What to Do If Your Business Loses Power

If your business suddenly lost power, would you or your team know what to do? Because a power outage could mean immediate safety concerns for employees and customers, it is important to have a plan in place before a power outage takes place. In addition to safety concerns, a power outage could affect productivity, leading to lost revenue. Outlining a plan and notifying all your employees can lead to better continuity and communication should a power outage occur.

Preparing Your Business for a Power Outage 

• Identify what parts of your business electricity would be essential to operate (freezers, medical equipment, lighting, exit signs, heating or cooling).
  
  
• Consider purchasing a backup power solution, such as a generator or portable generator that would have the capacity to run at least your essential appliances and lighting. If you do purchase a generator, be sure your staff knows how to operate it safely.
  
  
• Make a list of ways you can continue to serve your customers safely, such as offering limited services, taking cash only sales, or utilizing personal wireless hotspots.
  
  
• Weigh the pros and cons of closing your business for the duration of the power outage or keeping it open. If you decide to close your business during a power outage, create signage for your entrances ahead of time and let staff know where they are located.
  
  
• Look into business interruption insurance with a local insurance agent. In the event a covered peril occurs and causes a business to pause operations or temporarily relocate, business interruption insurance can help to replace a portion of a business’s income.
   
• Keep emergency items on hand such as flashlights, power banks, bottled water, and first aid supplies.
  
  
• Check to see if your electronics have surge protectors.
  
  
• Familiarize yourself with your state’s power outage work laws.

Create a Communication Plan for Power Outages 

Notify your team of the steps they should take in the event of a power outage. What staff members should be notified, and do you have phone numbers for all of them? Keep a copy of your utility company’s phone number to report outages.

How will you communicate to your customers whether you are closing or staying open? If someone other than you manages the social media pages for your business, be sure you have their contact information to relay information.

What to Do If Your Business Loses Power 

• Report the outage to your utility company using their designated channels. If there is a life-threatening emergency, call 911.
  
  
• Regularly communicate with your customers and staff. If your business has appointments or reservations in the near future, consider notifying them to reschedule. If your business has walk-in customers, consider signage or online announcements on social media to notify them.
  
  
• If your business plans to stay open, aim to create a safe environment for your employees and customers. Ensure emergency lighting is working, and block off any necessary areas such as elevators. If your business plans to close, lock the entrances after any customers or vendors have left. Post signs if necessary.
  
  
• Document the date and time of the power outage.
  
  
• Turn off any equipment not powered by a backup power source. Keep refrigerator and freezer doors closed.

What to Do Once Power is Restored 

Although it may be tempting to get things rolling as soon as the power is back, avoid turning on any major appliances or equipment for 15 minutes. If you have a generator, follow manufacturer’s guidelines for turning it off in a safe way. If your business suffered any losses, document them. Review your insurance coverage and file claims if necessary.

If your business closed during the power outage, let customers know you are back open for business. Restock any emergency supplies that have been used. While the incident is still fresh in your mind, make notes for any processes that should be changed for future power outages.

Know Your Insurance Coverages 

Commercial property insurance can help protect against some types of physical damage to your building. 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 covered loss causes physical damage to your business’s property, your commercial property insurance may help with the costs of repair, up to policy limits.

There are many different types of business insurance that you might need depending on your industry. Ask your local insurance agent for more information.

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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.