HURRICANE DISASTER PLANNING

Being prepared is key for success. When it comes to disasters, being prepared is key for survival. Florida is notorious for being the target of hurricanes and the havoc they bring with them. A hurricane can cause just as much devastation to a business’ operations as it can to its building. Proper planning is essential if a business is to survive a disaster such as a hurricane in able for it pick up where it left off prior to the adversity. Below are seven vital items that should be completed during the planning period as a way to mitigate the damage to business operations from a disaster.

1. Recognize and know the inner workings of the business
2. Establish management succession procedures
3. Back up all business data
4. Create emergency payroll, financial decision-making and accounting systems
5. Make a contingency plan in case the place of business is inaccessible or unusable
6. Obtain the proper insurance coverage
7. Make an emergency planning team

     1. Know the inner workings of the business. The first thing that must be done in the planning process in order to ensure a business can be continued after a disaster is to recognize what the business is trying to preserve. The business owner should consider what the worst case scenario would be in the event of a disaster and if the business can survive if closed down for several days, weeks, months or possibly even the entire revenue season. The way the company functions, both internally and externally must be assessed to determine which staff, materials, procedure and equipment are necessary to keep the business operating, as well as, determine what the business would absolutely not be able to survive without. This is an excellent time to analyze your business process flowchart (if one exists) in order to identify the operations that are critical to the survival and/or recovery of your business. From this assessment, you, the business owner, can begin the planning process to reduce the impact of a future disaster - in essence, loss mitigation.

     2. Establish management succession procedures for the situation where existing management is unable to attend to affairs. Depending on the magnitude of the disaster, there is potential for this to happen. This must be done not only to minimize confusion as to how duties are to be allocated, but also to lessen the amount of idle-time in operations.

      3. It is especially important to back up business data, such as customer lists, sales records, tax information, production formulas, inventory and any other information of importance to a safe off-site location so it can be recovered in the event of a disaster. It is also critical to update this information routinely. This information should also include that of any businesses that are interacted with on a daily basis such as shippers and suppliers.

     4. Create emergency payroll, financial decision-making and accounting systems to track and document costs in the event of a disaster.

     5. A contingency plan should be made so in the event that the place of business (building, plant or store) is not accessible or usable, operations can be maintained. This scenario could easily be possible if Jacksonville was hit directly by a hurricane or other major storm. Plans to use a different location or facility to conduct business should also be considered such as your home or possibly the facility of another willing company your business might have a relationship with. A supply of extra “hard to replace” parts or supplies should be kept at an off-site location. If this isn’t possible, an arrangement with suppliers should be made in advance to guarantee a sufficient supply.

     6. Sufficient insurance coverage is also important to a small business (or anyone for that matter) in the event of a disaster. If already covered, it is important to be fully aware of what is covered with your current policy and what isn’t. When buying insurance the business owner should also consider whether or not they will be able to pay creditors during an extended shutdown period. One type of coverage to consider is Business Interruption Insurance, which covers the loss of normal income if the business is unable to operate. Because many standard policies do not cover damages from flooding, another type of insurance to be considered for hurricane prone areas is flood insurance. You may need two flood insurance policies for a home business: a home policy and a separate business policy (depending on the percentage of the total square footage of your home set aside for business use). Again, review your policy terms to see what is covered with your current policy and what is not.

     7. A decision on who will participate in the emergency plan should be made. For example, some employees could be responsible for securing storage containers and others for backing up computer files and taking them to a secure location. It is important to include those who have expertise necessary to everyday business functions in the plan, such as: executives, managers as well as those with technical skills. Depending on the size of the business, a team should be formed that is responsible for creating, implementing, updating and maintaining the plan.

When is comes to hurricanes, there is no sure way of telling what to expect or where to expect it. It is important to be prepared for the unexpected and worst case scenarios when it comes to disaster planning. No matter how much warning we have ahead of time before a disaster strikes, it is going to catch someone by surprise.