Develop a Disaster Recovery Plan

A business impact analysis should be developed to identify what an operation must do to protect itself in the face of a natural disaster. Large corporations often hire risk managers to handle this task and some companies hire consultants with expertise in disaster planning and recovery to assist them with their plans. But small businesses can do the analysis and planning on their own.

Most business owners are complacent about natural disasters until one happens to them. Our agency would be happy to help your prepare your business for a natural disaster.

Your Business Disaster Plan 

•  Set up an emergency response plan and train employees to carry it out. Make sure employees know whom to notify about the disaster and what measures to take to preserve life and limit property losses.

•  Write out each step of the plan and assign responsibilities to employees in clear and simple language. Practice the procedures set out in the emergency response plan with regular, scheduled drills.

•  Compile a list of important phone numbers and addresses. Make sure you can get in tough with key people after the disaster. The list should include local and state emergency management agencies, major clients, contractors, suppliers, realtors, financial institutions, insurance agents, and insurance company claim representatives.

•  Decide on a communication strategy to prevent loss of customers. Post notices outside your premises; contact clients by phone, email or regular mail; place a notice in local newspapers.

•  Consider the things you may need initially during the emergency. Do you need to back-up source or power? Do you have a back-up communications system?

•  Human resources. Protect employees and customers from injury on the premises. Consider the possible impact a disaster will have on your employees' ability to return to work and how customers can return to shop or receive goods or services.

•  Physical resources. Inspect your business' physical plant(s) and assess the impact a disaster would have on facilities. Make sure your plans conform to local building code requirements.

•  Business community. Even if your business escapes a disaster, there is still a risk the business could suffer significant losses due to the inability of suppliers to deliver goods or services or a reduction in customers. Businesses should communicate with their suppliers and markets (especially if they are selling to a business as a supplier) about their disaster preparedness and recovery plans, so that everyone is prepared.

•  Protect your building. If you own the structure that houses your business, integrate disaster protection for the building and the contents into your plan. Consider the financial impact if your business shuts down as a result of a disaster. What would be the impact for a day, a week or an entire revenue period?

•  Keep duplicate records. Back-up computerized data files regularly and store them off-premises. Keep copies of important records and documents in a safe deposit box and make sure they're up-to-date.

•  Identify critical business activities and the resources to support them. If you cannot afford to shut down your operations temporarily, determine what you need to run the business elsewhere.

•  Find alternative facilities, equipment and supplies, and locate qualified contractors. Consider a reciprocity agreement with another business. Try to get an advance commitment from at least one contractor to respond to your needs.

•  Protect computer systems and data. Data storage firms off-site backups of computer data that can be updated regularly.

Independent Insurance Agent 2004, No II