Every year tens of thousands of businesses are affected bynatural disasters, and this year was no exception.

Although the insurance industry expects the fallout to be muchless than initially thought, it’s estimated that more than onemillion structures have been either damaged or destroyed byHurricane Matthew, and tens of thousands ofemployees are temporarily out of work.

In fact, Goldman Sachs estimates this storm probably caused $10billion in damage, placing it as the 22nd worst storm since WorldWar II. And for residents of North Carolina, facing continuedflooding the disaster isn’t over yet.

If your business was impacted by Hurricane Matthew, you areprobably asking yourself: “What do I do next?” Here are some of thethings you can do when evaluating the damage and getting operationsback on track:

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An employee of Cross Creek Body Shop takes photos of damagedue to floodwaters caused by rain from Hurricane Matthew inFayetteville, N.C., Oct. 9, 2016. (Photo: AP/Chuck Burton)

1. Walk through the premises

• Exercise caution while entering the premises for any hazards,including downed electrical wires.
• Enforce "No Smoking" rules and curtail the use of heat- orspark-producing equipment until you’re sure there are no flammableliquid or gas releases.
• Use caution before turning on electricity where equipment maybe damaged or wet.
• Use caution in opening fuel control valves. Check to ensurethat piping and equipment is intact, properly supported and notleaking.
• Make temporary repairs to the structure and property to preventfurther damage.
• Cover machinery, equipment or materials that may be exposed tothe elements.
• Check fire protection equipment, such as fire pumps, alarmsystems and automatic fire suppression, to ensure it’s workingcorrectly.
• Take photographs and video of damages, and maintain an itemizedlisting of materials and labor used to repair the property andrestore operations.
• Separate undamaged stock from damaged stock.

Related: Major flooding continues in wake of Hurricane Matthew[photos]

2. Start the recovery process

The following recovery and restoration checklist outlines thetasks necessary and the persons responsible to get operations backto their new “normal.”

• Notify employee families about the status of personnel onpremises.
• Notify and meet with your insurance carrier to discuss claimand restoration plans.
• Request an advance payment from your carrier if needed toresume operations.
• Contact federal, state and local government agencies forassistance (for example, permits, inspections, certification ofoccupancy, and debris removal, transport and disposal.) Informthese agencies of major restoration plans.
• Activate pre-loss agreements such as those with restorationcompanies.
• Obtain repair estimates from reputable buildingcontractors.
• Contact vendors for records preservation, equipment repair,earthmoving or engineering.
• Determine outsourcing needs, if any.

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Shawn Stephenson, left, and Marshall Dimick clear water froma real estate office that was flooded by Hurricane Hermine Sept. 2,2016, in Cedar Key, Fla. (Photo: AP/John Raoux)

3. Deal with the damage

• Take inventory of damaged goods. This can be done with theinsurance adjuster, and those photos and video you took will comein handy. Purchasing and sales records may assist in identifyingwhat stock or materials were on hand.
• Assess the value of damaged property.
• Assess the impact of business interruption.
• Contact your suppliers and key customers to determine theextent of their damages, so that you can determine theimpact to your operations and whether you might have a potentialcontingent business interruption claim.
• Keep damaged goods on hand for the insurance adjuster, butprotected from further damage in the event the carrier wishes tosalvage any property.
• If you release goods to the adjuster or salvage, obtain asigned inventory, with pictures, detailing the type of goods andquantity.
• Establish special job and charge codes for purchases andrepairs.
• Track the hours spent by your employees who are engaged in lossmitigation as opposed to normal business activities.
• Document all expenses directly related to the storm, secureinvoices and track any expenses related to the preparation of yourclaim.

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Lt. Mike Broadwell of the Greenville Police Departmentinstalls a No Trespassing sign near a neighborhood flooded by waterassociated with Hurricane Matthew, Oct. 12, 2016, in Greenville,N.C. (AP Photo/Brian Blanco)

4. Resume operations carefully

• Determine the need for an alternate facility, if necessary, andarrange to move your equipment.
• Coordinate power restoration with utility companies. Don’tenergize on your own, or you could cause damage and injury.
• Restore sprinkler systems and other fire protectionequipment.
• Restore equipment and property for critical operations.
• Move backup power and equipment into place. This includesbackup communication systems.
• Ensure personnel safety and security through ongoingcommunication and employee briefings.
• Provide employees with material safety data sheets (MSDSs) tokeep them award of potentially hazardous materials.
• Maintain transparency by ongoing contact with customers andsuppliers.

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Recovery workers clean up a subterranean garage in NewYork's Financial District, Nov. 12, 2012. (Photo: AP/RichardDrew)

5. Emphasize safety

In addition to protecting your business, it’s important toreinforce life safety for employees, tenants, residents andvisitors. Following a disaster, buildings must be confirmed safefor occupancy before any employees, residents, tenants or visitorscan reenter. The following are some key considerations, althoughthere may be others as well:

• Provide regular, written communication identifying existinghazards and controls necessary to keep people safe.
• Provide notification and warnings like signage, caution tape,cones, and wet floor signs in areas where hazards exist but accessis necessary. As appropriate, provide security to control andmonitor access.
• Control access to areas with existing or potential hazardsmaking the area(s) unsafe. Identify, contain and control leaks orspills of hazardous materials. Control exposure to broken glass,downed power lines, exposed wiring, falling tree limbs, damagedfaçade or exposed nails, among other things.
• Maintain proper access and egress from sites and buildings, andestablish safe pathways, roadways and parking areas. Provide properillumination in work zones, pathways and occupied areas.
• Maintain proper housekeeping during restoration and recovery.Clean all hard surfaces such as concrete flooring, wood and metalfurniture with hot water and laundry or dish detergent.
• If damage is water-related, turn off the power at the mainbreaker. Don’t turn the power on or off or using electric toolswhile standing in water.
• Place generators and associated fuel storage outsidebuildings.
• Contract with experienced, reputable and insured contractors tocomplete work beyond your company’s areas of expertise.

Related: 5 things to do to keep employees safe while cleaning up after ahurricane

Robert Meyers is senior vice president, property-casualtyleader, USI Insurance Services. You can reach Rob at [email protected]or at 914-749-8529.

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