When Disaster Strikes: How to Prepare, Respond and Recover

You can’t always forecast when the next natural disaster will occur, nor can you predict how much it will impact your business. While hurricane paths can be predicted 3-to-5 days out, other disasters like tornadoes and earthquakes are predicted with little to no time to prepare. Whether you’re in the early stages of business or already established, implementing a disaster recovery plan is an essential part of business continuity.

Pre-Disaster Stage

The reality is: business resilience isn’t just about the actions you take after a disaster, but the safeguards you set up before. Waiting until you’re aware of the next natural disaster is often too late. Focus on these four steps when creating a disaster recovery plan:

1. Evaluate regional threats: Evaluate the threat level of each natural disaster common to your region. Natural disasters vary state to state, so it’s important to know which ones are the biggest risk to your business and property. Then, make sure you have comprehensive insurance coverage against them.
2. Build protection plans: Outline a plan to protect, retrieve, and relocate equipment. This includes, but is not limited to, processes for backing up essential documents and data and ensuring the necessary emergency supplies, such as first aid kits and generators, are available.
3. Create a communication strategy: Create a contact list of employees, clients, customers, and contractors and establish when and how each group will be contacted in an emergency. Clear and timely communication helps protect your employees, maintain trust with clients and customers, and keep your operations running as smoothly as possible.
4. Update regularly: Confirm your insurance has adequate coverage, and regularly update your protection plans, contact lists, and communication strategy. An outdated plan can hinder your ability to respond effectively during a disaster, leaving you unprepared when it matters most.

Disaster Stage

When you know your business will be impacted; your disaster recovery plan goes into action. The most immediate actions you can take are securing the building, protecting your equipment, and ensuring employees are safe from potential dangers.

This is also when your communication strategy comes into play. Keep employees informed about office closures, evacuation routes, and system outages. Then, provide timely updates to your clients and customers about your business’s operational status.

Post-Disaster Stage

After the natural disaster has cleared, your business will enter the recovery phase. This phase often determines whether your business can resume regular operations or experience a more significant disruption.

The recovery stage can feel overwhelming but acting swiftly can avoid further damage or delays. Breaking the recovery stage into smaller steps can make it easier to navigate:

1. Inspect & document: Assess the extent of the damage and document all affected property, equipment, and assets. Create a detailed list and take photographs to support insurance claims and recovery efforts.
2. Contact insurance: Contact your insurance provider as soon as possible so an adjuster can assess the damage and start the claims process.
3. Maintain records: Keep records of all expenses incurred throughout the recovery process. You can use these for insurance claims and tax deductions, such as the Business Casualty Loss Deduction and Section 179 Expensing and Depreciation, to qualify for disaster relief and grants from agencies like the Federal Emergency Management Agency (FEMA), Small Business Administration (SBA), and U.S. Chamber of Commerce Foundation.
4. Communicate: Continue utilizing your communication plan to share critical updates with employees and customers.
5. Start rebuilding: Take reasonable steps to prevent further damage and begin salvaging assets when it’s safe to do so. Schedule repairs and get a completion estimate to start planning your reopening.
6. Inspect: Once repairs are completed, ensure safety devices are operational and, if necessary, arrange for professional inspection of gas and water lines.
7. Reflect & update: Use this event to evaluate what went well and where improvements could be made. Learning and updating your disaster recovery plan will strengthen your response for future emergencies.

Although disasters are unpredictable, your response doesn’t have to be. By planning ahead, your businesses can reduce downtime, protect your people and assets, and navigate an emergency with more confidence.

Resources:

• Disaster Preparedness eBook
• Small Business Administration Disaster Recovery
• FEMA Disaster Recovery Center
• FEMA – Assistance to Help Businesses