We all saw the devastating effects of the earthquakes that rocked California this summer. And, while Colorado living shelters us from these types of natural disasters, we are vulnerable to other types of acts of devastation like flash floods, fires and even tornadoes. Which begs the question, is your business protected?
Here are three helpful tips to protect your business against natural disasters:
Invest in the appropriate insurance
There are a variety of insurance policies you should consider to ensure that your company is fully covered during a natural disaster. Property insurance covers the damage incurred to company property, such as buildings, expensive equipment, computers and company documents. You can customize your policy to include coverage for specific natural disasters, such as flood and tornadoes, which are not included in standard policies.
You may also want to seriously consider business interruption coverage, which is one of the most important coverages you can add to your insurance package. This type of coverage will reimburse lost income that might have been generated during the interruption of business that follows damage to insured property by an insured peril. Be sure to consult with your insurance specialist to identify the most appropriate solutions for your business.
Be sure to develop a disaster plan
All natural disasters are unexpected and unwanted. So, it is vital to develop a plan before a potential crisis occurs. Important factors to include in the plan are outlined below:
- Decide who will be in charge of notifying employees of the disaster, and which method of contact will be used.
- Identify if there is a backup office arrangement in case the building cannot be inhabited.
- Develop and educate employees on the evacuation plan.
- Prepare the office if time allows. Forward calls from your desk phone to a mobile phone, ensure all equipment is in a secure location within the office, and, if possible, remove any devices from areas near windows and make sure electronics are unplugged.
- Invest in software that will backup essential, sensitive documents that may be lost or damaged during a disaster.
- Decide how customers or clients will be notified of any potential delays in deliverables, and who will be the point of contact for client communications.
Although it may seem as though some of the above factors may be common sense, it is best to not rely on assumptions. Develop a plan in writing, and review the details with employees to ensure everyone knows what to do.
Your business’ risks and liabilities change over time—and so should your insurance coverage plans.
To ensure your business is prepared for unexpected natural disasters, put a plan in place and evolve it as needed. Know where you are covered and where you are not. Appoint a leader to be in charge of reviewing and modifying your company’s insurance coverage plans to confirm that your business has the coverage it needs in case of an emergency.
As a business owner, it is imperative that you understand the level of compensation you would receive in the event of a natural disaster. If you are unable to assume the potential remaining losses, then adjust your insurance now to better align coverages with expectations.
Insurance policies can be confusing, so that is why we are here to help. Consider us as a resource to find the best insurance policy for your business. For more information on the types of insurance needed to protect your small business from a natural disaster, give us a call today at 303-721-1145.