Muncie, Indiana – An estimated 40 percent of all businesses will not reopen after experiencing a disaster, according to The Street. And 65 percent of all businesses will fail within the year following a disaster. Keep your business from becoming a statistic with a comprehensive small business disaster recovery plan. Disasters can come without warning, including tornadoes, fires, floods, or even major breaches of data security.
Review Insurance Coverage
Ensure you have the right insurance policies to protect yourself and your business. A disaster recovery plan should include insurance policies such as: commercial property insurance, general liability insurance, workers’ comp insurance, errors and omissions insurance, and umbrella insurance coverage. Ask an insurance broker about any insurance gaps in your coverage or redundant coverage that are unnecessary.
An experienced insurance broker can also give you details for why your business needs coverage, such as workers’ compensation. For example, TheHartford.com workers comp explains that workers’ comp “provides statutory required coverage for work-related injuries and includes rehab and lost wages.”
Protect Your Employees
When a physical disaster strikes, employee protection is a priority. Devise a disaster recovery plan that includes safety measures in the event of a fire, flood or other disaster striking when employees are physically on the premises. OSHA provides an evacuation and procedures etool that small businesses can use to create an evacuation and disaster management plan.
Don’t forget to place first aid kits throughout your property, and make sure that employees take part in disaster preparedness training, especially when the risk is heightened such as during tornado season.
Protect Your Technology
Data loss can be just as damaging if not more than a flood or tornado. The New York Times notes that preventing a technological disaster can be as simple as having consistent backups for all of your data. Schedule your backups to run automatically in a separate location from your computers and servers. In the event that your company’s physical offices are damaged, your data will stay protected.
Protect Your Physical Property
Physical property protection is as simple as conducting regular inspections and maintenance. Routinely make sure that all of your fire safety prevention methods are up to code and physical files are protected, such as within a safe. Also, regularly service and insure any machinery or equipment your business may operate.
During a disaster, you’ll need to do two things: notify your employees, and tell your clients. Maintain a list of your employees and clients that can be accessed in the event that your system is down. Notate how you’ll contact them. For example, you may need to send an email out to all of your employees and clients stating what has occurred, when the situation will be resolved, and what alternative methods of contact they can use for the duration.
Also, list priority clients you should personally call. As mentioned by Bank of Hawaii, you may also need to release information to the press.