BUSINESS CONTINUITY AND RISK MANAGEMENT
Nine Ways New Jersey Businesses Can Prepare for Hurricane Season
By Don Newman New Jersey Business Action Center
There ’ s no doubt that businesses nationwide have been significantly impacted by COVID‐19 . According to ZenBusiness , 75 percent of small businesses were forced to lay off at least one employee due to the pandemic , exacerbating other setbacks from economic uncertainty , including declining sales and a shortage of products and services . To compound these issues , as businesses in our coastal state work to recover from a once-in-acentury public health crisis , they must also prepare for hurricane season .
Warmer weather means a higher hurricane risk , with the Atlantic hurricane season running from June 1 through November 30 . According to the National Oceanic and Atmospheric Administration ( NOAA ), 2021 has cracked the Top 10 for warmest years on record . In fact , forecasters are predicting a 60 percent chance of above-average hurricane activity in 2021 .
Sadly , recent data suggests that 75 percent of businesses without a continuity plan will fail within three years after a natural disaster . The longer your business is not operating , the more likely you are to lose customers permanently to your competitors . So , it is important
to remain prepared for all sorts of difficult setbacks from these monstrous storms — from power outages to flooding , and property damage or lost work time .
The New Jersey Business Action Center ( NJBAC ), a part of the New Jersey Department of State , has nine recommended strategies to help small businesses endure :
Store important documents in the cloud , not the computer
Most businesses keep on-site records and files that are essential to normal operations . To reduce your vulnerability , determine which records , files and materials are most important , and back them up . These may include income tax forms , QuickBooks files , customer contact lists , strategy documents and passwords . From there , save these files on the cloud using an affordable service like Dropbox and DocHub , or Google Docs , which is free to use . This way , you can access your files from anywhere .
Keep office property secure .
Raise computers above the flood level and move them away from large windows ; move heavy and fragile objects to low shelves , and secure equipment that could move or fall during a heavy storm . In addition , hire a cybersecurity expert to make sure your systems are secure and virus-free . Protect your most important documents , credit card numbers , e-mail correspondence and more by hiring an expert to set up a secure system well in advance .
Have a restoration plan in effect . Establish a clear plan if you or your business partners are incapacitated . List types of emergencies that have occurred in the community or could occur and adjust your plan accordingly . Ensure trusted employees have access to passwords , keys , alarm codes , phone forwarding and other important items in the event of a disaster . Consider financial obligations you will have during interruption , such as payroll and debt service , and ensure a system is in place to pay bills electronically . Establish a social media presence for your business ( LinkedIn , Facebook , Instagram or Twitter ), and use social media tools to communicate with your customers about your business ’ status .
Keep insurance up to date .
Review your insurance coverage with an agent or your insurance carrier ; specifically , check the status of your business ’ interruption insurance . If disaster occurs , you can file a business interruption insurance claim detailing any lost income . For insurance and tax purposes , be sure to maintain written and photographic inventories of all important materials and equipment , and store in a safety deposit box if possible .
Consider installing an emergency generator .
Power outages are commonplace during disasters , and they may last for several days . As a result , even businesses that are not severely damaged can suffer losses because of the interruption of normal operations or the loss of perishable stock . You can reduce these losses and speed the recovery process by installing an emergency generator in advance .
An effective disaster preparedness plan will ensure that both you and your employees are safe in any unforeseen circumstance .
Photo : Getty Images / iStockphoto / designer491
Identify a backup location . If the primary location of your business is destroyed or severely damaged , you should identify a backup destination where employees can congregate , and clients can visit . This will help create a sense of normalcy and ensure clients that all is well . Make sure your organization has the proper equipment , including a functioning Wi-Fi router if the workplace is inaccessible due to the storm . Telecommuting tools should be available if employees must leave their company location unexpectedly .
Keep disaster supplies on hand .
Sometimes the simplest emergency plans are the most effective . Always have extra sets of batteries for when power goes out and critical
Continued On Page 24
22 COMMERCE www . commercemagnj . com