Do you know what is covered in your business’s property insurance policy? Do you have a business continuity plan? This article is a *must read* if you answered “no” or “sort of” to these questions. Have current damage? Call us at 877-411-2673.
According to the Florida Department of Financial Services there are three steps to disaster preparedness: insure, secure, and recover.[i] We have broken down how you can apply these three steps to your business in preparation for hurricane season.
Three Steps to Disaster Preparedness
1. Insure Your Business
Asses your insurance coverage. Clarify that your business’s insurance policy has what it needs to protect against any and all hurricane damages.
Contact your insurance agent and ask to review every aspect of your policy. Be sure to also ask if your policy provides coverage for loss of business income and extra expenses.
Florida Department of Financial Services suggests that if your policy provides loss of business income and extra expense coverage, the following items can assist you in the claims process:
- Historical sales records.
- Income and expense records.
- A record of extra expenses incurred to resume business operations.
- Receipts, records, and photos of damaged property inventory.
- Other business records that may help project what your business’ profits would have been if no loss had taken place.[ii]
2. Secure Your Business
Follow these steps to secure each area of your business:
- Save your insurance policies and your agent’s name and number in your phone.
- Catalog all the items and equipment your business owns. See our article, “Three Ways to Track Home Inventory” for some ideas about how to do this.
- Organize documentation of each item with photos and videos.
- Create a hard drive with necessary documentation as well as a printed version to store outside of your business property.
3. Recover Your Business
Make sure you are aware of what your insurance policy covers to be fully prepared should any damages occur. If damage does occur, first make sure all of your employees are safe and accounted for, then perform a thorough inspection of your property. Assemble detailed descriptions of any damage to your property, equipment, and inventory, checking every aspect of your business’ items. Take photos of all damage and do not throw away damaged property unless absolutely necessary. If safety reasons require you to discard damaged items, then take photos and or videos of these items before discarding.
Do you have current property damage? Please contact us if you have existing property damage, even if it is not new. We may be able to assist you by recovering more for your business claim.
Does Your Business Have a Continuity Plan?
Next, you will want to make sure to create a continuity plan for your business and review it with your employees.
Being equipped to get back on your feet after a hurricane touches down is important to helping your business and local community recover quicker. This is also true of tornadoes, flooding, fires, and other disastrous events causing property damage to your business.
Let’s walk through how to prepare and execute a continuity plan designed around your own business. When creating your plan, you will want to organize by: people, property, and operations.
Business Continuity Planning: Identify Your Risk
First, ask yourself these questions:
- Can your business operate without any of its normal equipment?
- Can your business operate without the normal utility systems?
- Can you still operate your business without accessing the building?
- Can you pay your employees if you cannot conduct business?
- Are your employees able to get to work?
- Is your business property able to be accessed?
- Can you communicate updates on the status of your business?
- Do you know which operations you need to recover first?
- Can you continue to conduct business without getting knew inventory/supplies?
- If applicable, are you able to conduct shipping services?
- Will your customers still be present post disaster?
- Can your business survive if you are closed for more than Seven days?
Business Continuity Planning: Develop Your Plan
Second, develop a plan with your team breaking down each category as follows:
- Construct a plan of action for protecting your employees.
- Take note of any items around your property that could potentially cause harm.
- As stated above, create a catalog of every item inside of your business.
- Be sure to check all systems your business property is responsible for.
- Asses the structure of your business and any attachments.
- Ask yourself how you can be of service to your community post-hurricane touchdown.
Business Continuity Planning: Take Action
Third, now that you have a plan, it’s time to take action. Take action with your staff, property, and business materials.
Inform Your Staff
Take action by making sure all of your staff are informed of the plan:
- Develop a communication plan among your team.
- Make sure all employees are aware of the plan.
- Organize an emergency supply kit and make sure all employees have safe shelter.
- Hold a training session.
- Implement a hurricane drill.
Prepare Your Business, Inside and Out
Business continuity planning for hurricanes and other disasters also requires taking necessary actions to prepare the inside and outside of your business. Do the following:
- Review your insurance coverage (see above steps).
- For the surroundings of your business you will want to hire a professional landscaper and tradesman to secure any signs, flagpoles, landscaping, fences, and any other items on your property that could potentially be easily displaced.
- Secure any inventory, chemicals, or other contents that could potentially cause harm.
Do a walk-through with a licensed professional for the below systems. Check the condition and the readiness to withstand wind, water, hail, and flying debris:
- Mechanical systems
- Fuel tanks/systems
- Electrical systems
- Communications equipment
- Lightning protection systems
- Utility connections
- Antennas
- Rooftop structures
- Sewer and water management systems
- Portable water systems
The structure of your building should be assessed by a professional. Have them check the following to assess for weaknesses which may result in exacerbated damage from natural disasters:
- Foundation
- Roof systems
- Skylights
- Walls
- Gutters
- Garage
- Windows
- Doors
Contact us if you have had damage to any of the above, resulting from insured events including wind, water, lightening, or hail. See our services.
Help Your Community
Lastly, your business and its employees can be of service to those in need during major disasters. Contact your local Emergency Management office and personnel will help you identify ways to incorporate community engagement and assistance into your business continuity planning for when a disaster strikes. This can include: preparing relief kits, sponsoring charging stations, making food, and knowing how and when you can volunteer in other ways throughout the community.
About CORE Public Adjusters
Along with helping our fellow neighbors with home insurance claims, CORE Public Adjusters also helps businesses with insurance claims. Learn how we can help you with business continuity planning and getting your business more for its underpaid or denied insurance claim. Learn more about CORE Public Adjusters.
We hope everyone is prepared and stays safe this hurricane season.
References
The business continuity information provided above is summarized from the Ready Business: Hurricane Toolkit provided by Ready.gov, in partnership with FEMA. According to Ready.gov, “Ready is a National public service campaign designed to educate and empower the American people to prepare for, respond to and mitigate emergencies, including natural and man-made disasters.”
[i] Business Disaster Prep [Video file]. (2020). Retrieved July 08, 2020, from https://www.myfloridacfo.com/Division/Consumers/UnderstandingCoverage/onDemand/Business-Disaster-Prep/_HTML5/index.html
[ii] Business Disaster Prep [Video file]. (2020). Retrieved July 08, 2020, from https://www.myfloridacfo.com/Division/Consumers/UnderstandingCoverage/onDemand/Business-Disaster-Prep/_HTML5/index.html
