Prepare For Mother Nature’s Worst
 By Terry M. Blair

No one ever thinks that it will happen to them. But bad things can happen to good business owners.

Fires, floods, blizzards and other natural disasters can come calling. Are you prepared? Could your small business recover from a disaster?

These aren’t questions that startup business owners often ask or answer. But, they should, says Jovita Carranza, deputy administrator for the U.S. Small Business Administration (SBA).

“The most successful recovery efforts are always preceded by good planning,” Carranza says. “The more preparation that businesses complete before a disaster, the better able they are to rebuild and reopen quickly after a disaster.”

The SBA now offers a 10-page guide that provides information you need to develop an effective plan for your small business in the event of a disaster. The guide offers key disaster preparedness strategies to help small-business owners identify potential hazards and create plans to remain in operation if the office is unusable.

Hard copies of the guide are distributed by SBA field offices, its resource partners around the country and disaster field offices. An electronic version of the guide is available online at www.sba.gov/services/disasterassistance/disasterpreparedness/index.html.

Disaster Planning Tips
Here are just few tips the SBA offers for disaster planning.

• Start the disaster plan by identifying what your operation needs to do to protect itself in the face of a natural disaster. Even if you don’t own the building where you do business, take steps to protect your assets.
  
  
• Determine what production machinery, computers and other essential equipment is needed to keep your business open. Store extra supplies offsite and make a plan for a temporary location if your company is forced to relocate after the disaster. Be ready for utility disruptions with a portable generator.
  
  
• Find escape routes from the business and establish meeting places. Make sure everyone understands the emergency plan before a natural disasster hits. Designate a contact person to communicate with other employees, customers and vendors.
  
  
• Review your insurance coverage to make sure you understand what is not covered. Most policies don’t cover flood damage. The National Flood Insurance Program (NFIP) provides coverage to property owners. Go to the NFIP Web site at www.floodsmart.gov.
  
  
• Consider business interruption insurance. It covers operating expenses, like utilities, and compensates you for the income lost after a temporary closure.
  
  
• Make backup copies of all tax, accounting, payroll and production records, and customer data on computer hard drives, and store the records at an offsite location at least 100 miles away. Online backup services are a good choice. Important documents should be saved in fireproof safe deposit boxes.
  
  
• To protect your property from wind damage, install impact-resistant windows and door systems, or plywood shutters. Hire a professional to evaluate your roof to make sure it can weather a major storm.
  
  
• Develop a post-disaster communications strategy. Keep current phone numbers for your suppliers, employees, customers, utility companies, local media and emergency agencies.

AFS Can Help
AFS can help your small business recover if disaster strikes. Check on these two coverage options.

1. Business Insurance
AFS has teamed with The Hartford Insurance Company to give you protection in the event of a natural disaster. This insurance will:
      • Replace damaged property
      • Provide a stream of income if your business is temporarily closed due to a covered loss

The insurance also offers general liability coverage.

2. Home Office Protection
The Home Office Protection Plan is provided at no extra charge to AFS Premier Resource Members. You’re protected in case of fire and lightning, ice and snow, windstorms and hail, as well as other events. You get coverage for up to:
      • $7,500 worth of equipment
      • $1,000 for tools
      • $1,500 for temporary relocation of your home business

Plus, you get up to $20,000 worth of business liability coverage at your residence.

(Posted March 2008)

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