North Palm Beach, Fla.: The Young family, L to R.. Lindsey,10, Katie, 8, dad Russ, Sarah, 9, and mom Annie paddle down the street from their home to check on some friends. (Credit: J. Albert Diaz/Herald Staff)
The 2022 Atlantic Hurricane Season is here, and there's a 65% chance it's going to follow last year's lead. The 2021 Atlantic Hurricane Season was the third most-active season on record to date. If this forecast is correct, 2022 could be the seventh above-average hurricane season in a row.
What constitutes an "average" hurricane season? The National Oceanic and Atmospheric Administration (NOAA) bases its definition of an average Atlantic hurricane season on a 30-year climate period dating from 1991 to 2020. During that time, an average of 14 named storms consisting of winds 39 mph or greater, seven hurricanes and three major hurricanes with winds of 111 mph or greater took place each year. In 2021, the U.S. experienced 21 named storms and seven hurricanes, four of which were classified as major.
NOAA predicts similar numbers for 2022.
The upward trend of increasing frequency and severity of tropical cyclones highlights the importance of adequate preparation and disaster management planning for individuals and businesses in coastal regions.
For small businesses, hurricane preparedness plans can be the difference not only between safe and unsafe employees, but of the ability to continue or reestablish business operations.
The three main goals of an effective plan are:
- Managing the business during the crisis
- Resuming normal operations as quickly as possible
- Recovering losses when it is over
However, it's important to remember that while the goals of an action plan take place during and after a storm, some of the most important steps you can take to prepare for a hurricane occur before the storm forms.
Before the storm
Employees should be the top priority for disaster management planning. Their safety and their ability to manage the crisis is dependent on a plan that includes them. The Occupational Safety and Health Administration dictates that a thorough response plan should include six key components. These are:
- Documenting conditions that will activate the plan
- Having a clear chain of command
- Designating emergency roles and responsibilities for all employees
- Creating evacuation procedures
- Providing safety equipment for personnel
- Establishing procedures to account for personnel, customers and visitors
Business owners should ensure that all workers understand this plan before an event takes place. Performing regular practice runs and updating the plan based on lessons learned will help achieve this goal.
Alongside preparing staff, business owners can take steps to safeguard their assets as well. Some ways to protect equipment, for example, include bringing items indoors if possible and fueling and regularly checking emergency generators and boilers.
The second step is ensuring you have the right insurance limits to cover your property's risk. A risk assessment of your property should include an evaluation of potential disruptions to your operations. If you have the resources available, catastrophic (CAT) risk modeling can help you understand the likelihood and severity of storms in your area. These tools, along with an annual appraisal of your property and equipment, will help you determine whether your current insurance limits are adequate.
Your assets also include equipment and critical information and data. Back up all critical information to the cloud, and prioritize safeguarding equipment, electronics, stock and records for both physical protection and insurance coverage.
During the storm
A business owner's priority during a storm is the safety of themselves, their employees and their visitors. If you've received an emergency alert and are on site, determine if you are safe to remain on site and indoors. Secure the facility for storm impact and continue to monitor weather conditions. This includes monitoring building systems for continuous operation and shutting down electrical switches if there is power loss.
If you are ordered to evacuate, do so immediately and communicate that information to everyone on site. Collect important paperwork or valuables to take with you, but remember your safety is more important. If you've taken the time before the storm to collect and organize these assets, it should be a quick grab and go.
After the storm
Once officials determine you can safely return to your property, it is important to survey and document the damage with notes, photos and/or video. You may also need to take immediate action to safeguard any undamaged property or make temporary emergency repairs to mitigate additional damage. Prioritize restoring security or life safety systems along with any equipment that is for critical operations.
Scott Fouts, senior vice president of global insurance brokerage Hub International's Risk Services Division. Since you've already taken the necessary steps to secure adequate insurance coverage before the storm, your next step is to contact your insurance broker to start the recovery process.
If you have a risk partner, they will help you contact the right response and restoration teams. If rebuilding is needed, make sure to hire reputable contractors that provide Certificates of Insurance (COIs). Your insurance carrier will want COIs, along with copies of all receipts and invoices related to your property claim.
While you work to restore and recover your property, you can resume operations by establishing an alternate work area and centralizing administrative and essential business functions. You might need to rent equipment until you can fully repair or replace that damaged in the storm.
Hurricane preparedness, especially in today's climate, does not end after your business has recovered from a storm. Once operations are safely resumed, it's time to reflect on the event and reassess your emergency management plan. This living document reflects lessons learned to prepare for future events. Over time your business will become more resilient when disaster strikes.
Scott Fouts is vice president of global insurance brokerage Hub International's Risk Services Division. He has 17 years of experience in occupational safety, health, and risk management consulting. He spent 15 years on the carrier side of the business providing risk management, safety, property, product liability, environmental, business continuity, fleet, claims and industrial hygiene services. He is part of Hub's Hurricane Crisis Resource Center.
Join our LinkedIn group, ALM's Small Business Adviser, a space where small business owners can gather to network, have discussions and keep up with the trends and issues affecting their industries.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.