3 Key Tips At Time of Disaster
As a business owner, there are challenges you can anticipate and others that hit with little or no warning when a disaster happens; greater than 40% of businesses do not reopen after a disaster.
A critical component of any disaster recovery plan is business interruption insurance. This policy can help replace a business’s lost income and pay expenses if it is forced to cease operations due to a disaster. However, 60% of business owners surveyed don’t have this coverage. The typical business interruption policy can provide up to one year or more of benefits and help pay for lost revenue while the business is closed, rent and/or relocation costs if the business is forced to move and day-to-day operating expenses such as employee wages, taxes and loan payments.
Following a disaster these 3 key tips will help you get up and running quickly:
1. Inventory and list of your critical business physical assets, key customers, vendor contacts and your insurance company claim telephone number including emergency repair contractors. Consider capturing these assets in photographs or video files in the cloud. Remember your cell phone may not be operational for several hours or days.
2. Ensure you review your Disaster Recovery Plan with your employees and confirm they have a copy at home and have a calling tree so that they know at the time of a disaster who they can expect will contact them and the communication protocol.
3. Construct a financial plan including business income insurance to assist in mitigating financial disruption to your business. Ensure your financial records are maintained in a cloud format so that you can share your financial history with your insurance company to expedite claim payment.
If a natural disaster impacts your business, your first priority is safety for you and your employees and next should be filing a claim with your insurance company. If possible, take photos to document the damage to expedite the claims process,
Next, reach out to your key customers and vendors and explain the situation and give them alternate means of contacting you and key information in the event they need to contact you or utilize your business services.
Proactive communication with your insurance company and your customers will help to minimize the financial impact and disruption for your business and customer relationships.