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If a natural disaster struck your business tomorrow, how would you recover?
In reality, every company in the world faces the possibility of a business interruption. Without the right preparation, a temporary stoppage can lead to a permanent closure. To avoid a critical loss here's what to consider to maintain an income stream should a catastrophe occur.
Get the Right Coverage
75% of businesses in the United States are underinsured. To be sure you're covered from disaster, business interruption insurance is an excellent choice.
As the name implies, business interruption insurance is designed to cover your operations in case of an incident that provides a moderate to long-term interruption of business. This can range from flooding that ruins your property temporarily to a fire that burns down your premises. With the right insurance policy, you can have a safety net in place to mitigate cash-flow issues and help your business stay afloat while getting your operations restarted.
Verify Vendors & Suppliers
You may have a great plan in place should trouble come knocking. But that doesn't mean everyone you work with will be quite as proactive. If your business relies heavily on the services of others, check for disaster recovery planning during the vetting process to be sure your vendors or suppliers won't leave you high and dry.
When contacting new and existing partners, ask about preparedness response plans. Query about insurance coverage, operations under disaster circumstances, and how service will change if weather or other issues limit operations. A company without good answers isn't one you can depend on in tough times.
Establish a Disaster Recovery Plan
Business continuity planning is a critical part of running an effective operation. If your business doesn't already have such a plan in place, now's the time to start one. Plenty of templates exist online, but your plan will likely vary based on the unique facets of your company.
When crafting a plan, be sure to focus on things like stand-in headquarters locations, practices for working remotely, employee notifications and communications. Be sure to empower critical team members to take charge of activation when a problem arises. Verify payroll insurance, review your organizational structure, and make sure all employees have provided adequate and accessible contact information.
Plan for the Worst Case Scenario
No one expects a forest fire, earthquake, flood, or hurricane to strike. But every year, hundreds to thousands of businesses across the country find themselves affected by these kinds of incidents. It’s prudent for your plan to expect that these kinds of issues will close doors for a few days at least.
Some 40% of small businesses never reopen after a disaster like a flood, in large part because they are improperly covered. For many businesses, avoiding this fate means setting up insurance protection as well as setting up expectations. A disaster might not sideline you for just a few days or even a few weeks; you may not be able to function fully for months. So ensure your plans and your insurance policies take the worst-case scenario into account.
A hurricane wiping out your office might not be likely, but the possibility exists. If you find yourself in an emergency situation, proper preparation can truly be the difference between making it through and closing up shop forever. From insurance coverage to recovery plans, it's always better to be safe rather than sorry.
- Would you have a way to access files if your physical office was destroyed?
- Are your books and records backed up and preserved?
- Do your employees know where to go and what to do if an accident shuts your doors?
In reality, every company in the world faces the possibility of a business interruption. Without the right preparation, a temporary stoppage can lead to a permanent closure. To avoid a critical loss here's what to consider to maintain an income stream should a catastrophe occur.
Get the Right Coverage
75% of businesses in the United States are underinsured. To be sure you're covered from disaster, business interruption insurance is an excellent choice.
As the name implies, business interruption insurance is designed to cover your operations in case of an incident that provides a moderate to long-term interruption of business. This can range from flooding that ruins your property temporarily to a fire that burns down your premises. With the right insurance policy, you can have a safety net in place to mitigate cash-flow issues and help your business stay afloat while getting your operations restarted.
Verify Vendors & Suppliers
You may have a great plan in place should trouble come knocking. But that doesn't mean everyone you work with will be quite as proactive. If your business relies heavily on the services of others, check for disaster recovery planning during the vetting process to be sure your vendors or suppliers won't leave you high and dry.
When contacting new and existing partners, ask about preparedness response plans. Query about insurance coverage, operations under disaster circumstances, and how service will change if weather or other issues limit operations. A company without good answers isn't one you can depend on in tough times.
Establish a Disaster Recovery Plan
Business continuity planning is a critical part of running an effective operation. If your business doesn't already have such a plan in place, now's the time to start one. Plenty of templates exist online, but your plan will likely vary based on the unique facets of your company.
When crafting a plan, be sure to focus on things like stand-in headquarters locations, practices for working remotely, employee notifications and communications. Be sure to empower critical team members to take charge of activation when a problem arises. Verify payroll insurance, review your organizational structure, and make sure all employees have provided adequate and accessible contact information.
Plan for the Worst Case Scenario
No one expects a forest fire, earthquake, flood, or hurricane to strike. But every year, hundreds to thousands of businesses across the country find themselves affected by these kinds of incidents. It’s prudent for your plan to expect that these kinds of issues will close doors for a few days at least.
Some 40% of small businesses never reopen after a disaster like a flood, in large part because they are improperly covered. For many businesses, avoiding this fate means setting up insurance protection as well as setting up expectations. A disaster might not sideline you for just a few days or even a few weeks; you may not be able to function fully for months. So ensure your plans and your insurance policies take the worst-case scenario into account.
A hurricane wiping out your office might not be likely, but the possibility exists. If you find yourself in an emergency situation, proper preparation can truly be the difference between making it through and closing up shop forever. From insurance coverage to recovery plans, it's always better to be safe rather than sorry.
