Pull In Case of Emergency: How to protect your business during a disaster

By Joshua Botello

Managing your business daily is stressful enough, not to mention in the midst of a crisis. Whether it be a Category 5 hurricane, 8.0 magnitude earthquake, or your office flooding because of a faulty toilet, but what do you do in the midst of a disaster? The answer to that question will determine whether your business sinks or gives you a fighting chance. 

The key is preparation. Having an existing plan in place before disaster strikes can make all the difference. But what exactly are you supposed to be prepared for? Here are some tips and scenarios to avoid certain disasters.

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Know and Review Your Insurance

Business insurance is a necessity. Policies for natural disasters like a brush fire, flood, and earthquakes (like California) will require you to weigh your options. Consider the likelihood of an event and whether you can stand to do business if your physical location is compromised.

Here is a vital insurance policy you probably have never heard of: Key Person insurance. This is basically an insurance policy for a key member of the business in case of injury to that individual. How do you know if you need Key Person Insurance? Ask these questions:

• Is this person integral to business?
• Are they an owner?
• Do they handle the key customers?
• If this person were put out of commission would the business stop?

These are just some of the considerations you will need to address to determine if this is right for your business. Check with your licensed financial advisor or insurance broker to determine the best policy for your business.

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Staffing & Remote Work

What happens when a key employee is stranded or suddenly has to relocate? Do you know what to do? Are they or you, an integral part of the business? Having a beloved employee relocate out of the state or get stranded coming back from vacation or business trip can be a disaster in and of itself. So what do you do?

Having standard operating procedures to carry on without that employee is vital for simple daily functions. You need a guide or instructions on how to do essential functions of the business in case the person is out or if you need to train another new employee. Cross-training specific employees to take care of certain functions while that dedicated person is gone on vacation or permanently, is a great idea to keep your business running smoothly.

Having a current job description in place will be needed to hire quickly to hire a quality replacement if that employee cannot return to work. If you only need a short term employee, having a relationship with a staffing agency will ensure you have access to a talent pool in the interim. As a business owner and boss, these operational tools should be at the ready, whether you need to hire a new employee or replace an employee for the short-term.

During an emergency or illness, having access to technology or computers may not have been an option 5 years ago, but having a remote work plan nowadays is essential. More companies are transitioning to web-based applications to save on the cost of installing and updating desktop software.

Having the availability to run the business or to have access to company resources while an employee isn’t in the office can maintain productivity and shows empathy of you as a business owner when you have these types of plans in place.

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Evacuation Plan

Do you know where to go when there is an evacuation order? What do you need to take with you? If most of your work is service-based and can be done outside of your physical office, then great! What if that office is about to burn down or becomes inaccessible? Can you move those essential files out in time or are they backed up to a digital drive you can just take with you?

As a business owner, you need to create not only a plan to keep your employees safe but your business data as well. Having a regular back-up schedule for important data or a cloud solution is required to keep those files offsite and secured, in the event of an evacuation. 

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Supplier Contingency Plan

Disasters don’t necessarily have to happen to your business to affect you. Is your supplier in an affected zone? Suppliers are the lifeline to your thriving business. If you can’t get the materials for your product, how can you keep your business going? Don’t put all your eggs in one basket.

Needing a contingency plan for your suppliers is a reality. Your vendor may offer the best price in the world but that doesn’t mean much if you cannot get your materials. Plan to diversify your suppliers in your space. Planning to produce products closer to home is an option that can reduce shipping and manufacturing delays that potentially lose all of your revenue.

Remember, these are just some tips for protecting your business from disaster. You don’t need to make sure you plan for every eventuality and perfectly protect your business. That’s just impossible. The idea is to have those plans ready in advance so that operations are run as normal as they could be.

Remember the old saying, “Failing to plan is planning to fail” and stay prepared. Check out these additional resources to protect your business. Let us know how to you have prepared for an emergency down in the comments below.

Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.