Many small businesses, including insurance agencies, are not prepared to respond to a man-made or natural disaster. Local small businesses are particularly at risk because they may have all of their operations concentrated in one location.
Statistics show that, of businesses that close because of damage from a disaster, at least one in four never reopens. Why not take the time to create a plan to make your business more resilient and better able to withstand any disaster?
Disaster planning should be a critical part of every insurance agency owner's business strategic plan. As part of National Small Business Week, the Insurance Institute for Business & Home Safety (IBHS) offers the following eight actions to help insurance agency owners get started on severe weather and disaster preparedness.
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1. Inspect your buildings and complete any maintenance needed to ensure your building can stand up to severe weather. Learn more about what to look for during inspections.
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2. Designate an employee to monitor weather reports and alert your team to potential severe weather. Most storms and many other types of natural hazards can provide advanced notice and be tracked, which allows for at least some preparedness planning.
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3. Review and update your business continuity plan, including employee contact information. Ensure all employees have your business' designated emergency telephone numbers.
If you do not have a business continuity plan, consider IBHS' free, easy-to-use business continuity plan toolkit for small businesses, OFB-EZ (Open for Business-EZ). Learn more about effectively updating your continuity plan.
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4. Remind employees of key elements of the plan, including post-event communications procedures and work/payroll procedures. Make sure all employees have a paper copy of the plan. Review emergency shutdown and start-up procedures, such as electrical systems, with appropriate personnel, including alternates. Learn how to engage your employees in emergency planning.
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5. Test your back-up power, such as a diesel generator, and establish proper contracts with fuel suppliers for emergency fuel deliveries. Learn more about proper installation and use of commercial generators.
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6. Re-inspect and replenish emergency supplies inventory, since emergency supplies are often used during the offseason for non-emergency situations.
A pile of waterlogged office furniture. (Photo: Daryl Lang / Shutterstock.com)
7. Test all life safety equipment, including emergency and exit lighting, smoke detectors, fire alarm systems, sprinklers, and emergency doors.
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8. Conduct training/simulation exercises for both your business continuity and emergency preparedness/response plans. Make decisions on when to excuse employees so that they have sufficient time to prepare their homes and families, and notify employees of office closure details.
While emergency planning ideally is a 12-month priority, the start of the severe weather season in your area is a good time to refocus your efforts.
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