Preparing Your Business for Natural Disaster

Don't Wait – Protect Your Data and Network Now

You may have a plan, but how often do you back up your critical data? A natural disaster can wipe out critical business records and data, making it essential to back up important files, including financial records and customer data, to a secure off-site location or cloud-based service. If your actual physical location is damaged by a natural disaster, you may not be able to access your servers at all. Maintaining critical data and records — from your customer lists and preferences to your inventory and even your HR and employee documentation — ensures you have what you need to get up and running again in a hurry.

Your disaster plan should account for storing copies of these critical records in the cloud or in a secure location miles from the original so they can help you get back on track when you need to. Every business should back up essential data regularly and store it off site to ensure recovery in case of a disaster. If you simply back up your records on a device that is stored in the same location or on the same property as the original, you risk losing both places — and all your data — if a natural disaster occurs.

Businesses should consider storing all important documents, such as insurance policies and financial statements, in the cloud or on external hard drives to protect them from potential loss during a disaster.

Investigate Insurance

You need to thoroughly review what your insurance policy offers well before a natural disaster strikes. It is crucial to understand your insurance coverage and ensure it is adequate for your business needs, as inadequate coverage can lead to major financial loss if your business is damaged, destroyed, or interrupted for a period of time. Do you have business interruption insurance to protect you from lost income? Business Interruption Insurance is essential for protecting against loss of income due to disasters that disrupt normal business operations. What happens if you have a home-based business and your home is damaged; does homeowner’s insurance cover business losses? (Probably not.) Flooding, wind, and other natural hazards may not be included in your regular policy, so knowing which of these types of disasters you are likely to encounter can help you determine what type of policy you need to mitigate risk.

Consult with an insurance agent to review your insurance policies and ensure you have the right coverage for your business, including disaster-specific and cyber coverage. Document your equipment, supplies, and the physical workplace to make sure everything is properly protected under your insurance coverage. Review your insurance coverage regularly — ideally every five years — to ensure it meets your current needs and includes coverage for specific disasters.

Know Your Risk

If you live in the usually sunny southeast, a hurricane could impact your business, even if you are hundreds of miles from the shore. Big brands like Disney, Universal Studios, and Sea World all closed huge theme parks when Hurricane Irma struck, even though Orlando is hundreds of miles from the point where this massive storm made landfall. 

It is crucial to assess the potential risks and vulnerabilities specific to your business location and operations. Much of your natural disaster risk will depend on where you live; your risk of tsunami is small unless you are right on the coast, but flooding can happen anywhere. Fire is always a risk, but places with huge natural forests or dense populations are more likely to experience the kind of rapid spread that creates a natural disaster situation.

Prepare to Protect Employees and Guests

You will need to be able to account for all your team members if they are working when an emergency occurs, or reach them when you need to. Your employees are one of your largest assets, particularly when it comes to recovery, so have a plan in place for safeguarding your team.

In a disaster situation, your employees may even need to shelter in place for a period of time that is longer than expected. Having everything you need on hand to cover this eventuality can give you peace of mind that you are ready, no matter what happens outside. Your facility needs an emergency plan that specifically addresses the security and safety of your team, any visitors or guests, and any customers on site when disaster strikes. It is also essential to provide assistance to employees with disabilities during emergencies, ensuring their individual needs are addressed in your emergency plan. Once the people are safe, you can begin to recover and reorganize your key systems.

Your business’ emergency plan needs to have guidelines for safe evacuation of your buildings, a secure location for bad weather sheltering, and even lockdown protocols to prevent looters or those seeking to harm you from accessing your business after an event. Preparedness training should include practicing evacuation procedures, along with warning systems and shelter-in-place drills, to ensure everyone knows what to do in an emergency. Offering on-the-job training for emergency planning can also pay off. When your employees are equipped to handle disasters at home and at work, they will be better able to support your business and return to work after an event.

How Vulnerable Is Your Business?

Understanding the climate and region your business is in will help you determine how much risk you face. If you have multiple units, your store across the street from the ocean has a much higher flooding risk than the one perched atop a mountain peak.

Finding out the typical types of emergencies your area has experienced in the past can help you plan and prepare. Your local government can assist you; a Hazard Vulnerability Assessment (HVA) likely already exists for your town or county. Use this to determine how close you are to trouble zones. Any of the following could increase your risk if they are near your business:

• Flood plains
• Seismic faults
• Dams
• Nuclear power plants
• Power plants
• Large bodies of water
• Unmaintained forest land
• Volcanoes

Your fire department or police station may also be able to provide you with information you can use to help determine your risk. Depending on the type of risk your business faces, a visit from a contractor specializing in risk mitigation can help. If you are in an area prone to earthquakes, your business could be secured to prevent shifting and damage.

Take Steps to Protect Your Business

What can you do to ensure your employees, your assets, and your business is safe? Part of creating an emergency plan is simply getting together with your team and discussing all the possibilities. A committee or team can work together to create an emergency response team and protocol that can be implemented as needed.

• Create an emergency response and planning team – Pick leaders from each division or location, if possible, and talk about risk, your preferred response, and what you can do to keep your on-site team safe. You will need to come away with clearly defined protocols for any potential disaster. You should have a clear idea of the role each employee will play during a crisis. If your employees are stuck on site in an emergency, who is in charge and what do they need to do? Your emergency plan should include details about safety procedures and for securing your business once it is safe to do so. The person in charge during an emergency situation may not be the same person who runs your brand or business; an HR or security team member familiar with your plan and emergency operations is often a better bet. This team member can immerse themselves in planning and preparation to ensure your employees are safe during an emergency.
• Order supplies needed – You will also need to order any supplies you need well in advance. Knowing you need a first aid kit is only the beginning — you need to actually implement all stages of your plan and have everything you need on site to fully protect your team and brand, such as safety equipment specific to your environment and risk, first aid kits for each office or location, Automatic External Defibrillators (AEDs), smoke and CO² detectors, fire extinguishers, and shelter-in-place food and water supplies. Having these items is a good start, but your employees also need to know how to access and use them.
• Communication – One of the first things you will need after an emergency is a way to communicate. You will need to be able to connect internally, but also with local emergency officials and families of your workers. While your systems may not be operational right away, outlining how you want communication to work and what team members should speak with the media and emergency response workers can help prevent problems later.

Continuity of Operations Plan (COOP)

Once the natural disaster has passed and you have secured your team, focus on getting your business operational again. Creating a Continuity of Operations Plan (COOP) can help you respond in an emergency and ensure you are back on track as quickly as possible. This plan should include the following:

• Identification of essential team members and business functions
• Procedures for suppliers and vendors who are important for your daily operations
• A plan for running your business if key structures or facilities are not functional or available
• Details about accessing your electronic backups and network data
• Hard copies of essential documents needed for restoring your business, from your insurance information to your important data and paperwork

Your COOP needs to be in hard-copy form and stored in a fire safe or other secure location. Multiple copies (some stored off site) can help ensure your team can access this important document when you are ready to begin recovery.

Your emergency plan should anticipate the most common situations. Include detailed and actionable steps for securing and safeguarding your people, data, and physical structure, and have a detailed recovery plan in place. Once you have these components, you will be better equipped to restore operations and act decisively, even in the chaos that is part of the aftermath of a disaster situation. You cannot prevent a natural disaster, but you can minimize the impact it has on your team and ensure that your business is ready to resume operations as quickly as possible in the aftermath.

Recovery and Review

Once disaster strikes, having a clear recovery and review process is essential for protecting your business and ensuring a swift return to normal operations. Start by assessing the damage to your physical property and reviewing your financial records to understand the full impact on your business. Communicate promptly with your employees, customers, and your insurance company to keep everyone informed and begin the claims process.

Activate your business continuity plan to continue operations, even if your primary location is inaccessible. This may involve relocating to an off-site facility, utilizing backup equipment and supplies, and implementing alternative communication plans to stay connected with your team and customers. Make sure you have access to essential documents and resources, and designate a meeting place where employees can gather for updates and instructions.

Be prepared for the likelihood of power outages by having a battery-powered radio and other emergency equipment on hand. As you move through the recovery process, review the effectiveness of your disaster plan, identify areas for improvement, and update your procedures based on lessons learned. Regularly reviewing and refining your plan ensures your business is better prepared for future events.

By prioritizing recovery and review, you can minimize risk, protect your property and essential assets, and support your employees and community. A thorough recovery process not only helps your business bounce back but also strengthens your overall disaster preparedness for the future.