Prepare Your Business for Hurricane Season

National Hurricane Preparedness Week is a good reminder to prepare early for these massive natural disasters and their potential effects on your business. Did you know more than 25% of businesses that close following a disaster never reopen their doors? While hurricanes and tropical storms are unavoidable, organizations can take critical measures to protect their company’s bottom line. The best safeguard for your operation is to create a disaster plan and obtain appropriate insurance coverage.

Hurricane/Tropical Storm Recovery Plan

Conducting a business impact analysis can help identify areas where your organization needs protection when facing a natural disaster. Your insurance risk manager can assist with providing expertise in disaster and recovery planning.

The Recovery Plan should include:

  • Clear and concise directions for each step and assigned employee responsibilities.
  • An emergency response procedure that addresses who to notify and measures to ensure safety and minimize property losses.
  • A list of important phone numbers and addresses for communication following the hurricane. It should include local and state emergency management agencies, significant clients, contractors, suppliers, realtors, financial institutions, insurance agents and insurance company claim representatives.
  • A communications strategy that includes displaying notices, contact clients by phone and/or email or place a local newspaper notice or radio spot.
  • A business continuation plan.
  • Considerations if a hurricane impacts your employees’ ability to return to work.
  • The financial impact of a potential business shut down. What would be the impact for a day, a week or an entire revenue period?
  • Critical business activities and the resources needed to support them. If you cannot afford to shut down operations, consider a temporary location.
  • Location of alternative facilities, equipment/supplies and qualified contractors. Consider a reciprocity agreement with another business. Attempt to establish an advanced commitment from at least one contractor to respond to your needs.
  • Shareable disaster preparation and recovery plans for your suppliers and markets as they may be unable to deliver goods and services. Determine how to continue to provide goods or services to consumers.
  • Location of off-premises duplicate record storage including regularly computerized data file back-ups. Keep up-to-date copies of important records and documents in a safe deposit box.
  • Strategy of computer systems and data protection. Data storage firms offer off-site backups that can be updated regularly.
  • A completed copy of our Hurricane Preparedness Checklist that provides guidance on actions you should take to protect employees, customers and your business. .

Review Your Insurance Plan

Make sure you have sufficient coverage for the indirect costs of a hurricane, including business disruption and repair or rebuilding expenses. Many policies do not cover flood damage. A separate flood insurance may need to be included in your policy for these perils. Your disaster recovery plan should also verify coverage for business interruption and extra-expense insurance.

Do not let a lack of insurance coverage or poor planning destroy your business. A qualified risk management advisor can help you understand your policy deductibles and limitations. Contact a member of our team to learn more about disaster planning and to determine your best insurance coverage needs.

Source: Insurance Information Institute. Reprinted with permission.

Prepare Your Business for Hurricane Season Hurricane Preparedness Week is a good reminder to prepare early for these massive natural disasters and their potential effects on your business. 2021-05-12T16:00:00-05:00National HurricanePreparedness Week is a good reminder to prepare early for these massive naturaldisasters and their potential effects on your business.Risk MitigationProperty & Casualty InsuranceYes