Risk & Business Magazine Bowen Miclette & Britt Spring 2017 | Page 27

PLANNING FOR HURRICANES
“Of all the businesses that close down
following a disaster, more than 25 percent
never open their doors again.”
BY: PAUL CERONE, COO,
BOWEN MICLETTE & BRITT
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
your premises, or receive goods or
services.
•
•
•
•
Compile a list of important phone
numbers and addresses. Make
sure you can get in touch 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.
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.
Even if your business escapes a
disaster, there is still a risk that the
business could suffer significant
losses due to the inability of
suppliers to deliver goods or
services, or because of 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 as well
as 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?
•
•
•
Identify critical business activities
and the resources needed to support
them. If you cannot afford to
shut down your operations, even
temporarily, determine what you
require to run the business at
another location.
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 offer off-site
backups of computer data that can
be updated regularly via high-speed
modem or through the Internet.
REVIEW YOUR INSURANCE PLAN
Make sure you have sufficient
coverage to pay for the indirect costs
of the disaster—the disruption to your
business—as well as the cost of repair or
rebuilding. Most policies do not cover
flood or earthquake damage and you
may need to buy separate insurance for
these perils. Be sure you understand
your policy deductibles and limits.
For a business, the costs of a disaster
can extend beyond the physical damage
to the premises, equipment, furniture
and other business property. There’s
the potential loss of income while the
premises are unusable. Your disaster
recovery should include a detailed
review of your insurance policies to
ensure there are no gaps in coverage.
This includes property insurance,
business interruption insurance and
extra expense insurance. Even if your
basic policy covers expenses and loss of
net business income, it may not cover
income interruptions due to damage
that occurs away from your premises—
such as to your key customer or supplier
or to your utility company. You can
generally buy this additional coverage
and add it to your existing policy.
Most business owners are complacent
about natural disasters until it happens
to them. It’s only when the owner has
gone through a disaster that a disaster
plan, including purchasing the proper
insurance, is usually considered.
Don’t let a lack of insurance coverage
or poor planning destroy your
business. Contact Bowen Miclette &
Britt Insurance Agency, LLC to learn
more about disaster planning and to
determine your best insurance coverage
needs.
Even if a hurricane does not put your
company out of business, you may
not be able to make contact with
your customers or obtain important
deliveries. To combat these risks, you
must take the necessary steps before
a disaster strikes to ensure business
continuation. +
Turn to the next page for our
Emergency Hurricane Preparation
Checklist!
Source: Insurance Information Institute.
Reprinted with permission.
This Risk Insights is not intended to be
exhaustive nor should any discussion or
opinions be construed as legal advice.
Readers should contact legal counsel or
an insurance professional for appropriate
advice. Design © 2010 Zywave, Inc. All
rights reserved.
27