Every Business Needs a Disaster Plan

Many large businesses employ risk managers to oversee the company's loss prevention endeavors. Included in this program is a thorough disaster plan. But no matter how large or small the operation, every business needs to develop a solid disaster plan.

Adequate insurance coverage is just one element of the disaster plan. Check out the checklist below, which should provide sufficient information to get started on your business disaster plan:
 
* Assign disaster actions and responsibilities to employees. Everyone should know their duties in the event of a disaster; whether the disaster takes place during work hours or afterwards.
* The emergency plan should be practiced and reviewed regularly.
* A list of all important phone numbers and addresses must be compiled. Key contacts will need to be reached immediately following a disaster. The list should include emergency management agencies, top clients, insurance agents/claim reps, contractors, suppliers, realtors, property managers, banks and financial institutions.
* Determine a communications plan for your customers. This may include notices posted on site; calling/emailing clients; sending information to a local newspaper; posting information on your company website.
* Determine how you can set up a back-up power source and communications system.
* Make sure employees and customers are protected. Is the office/store safe? Is there another location that may be used for deliveries? Is there a safe central meeting place outside the office/store?
* Determine in advance how long your business can survive if a disaster forces you to shut down for any length of time. Make sure you have insurance to cover this sort of revenue loss; and try to keep sufficient liquid resources available in case of such an emergency.
* Make sure you computer files are stored off-site. Keep important documents in a safe deposit box.
* If you cannot afford to shut down your operations, determine in advance what functions must continue and make sure your plan includes alternative locations that may be utilized.
* Protect computer systems and data. There are many data storage firms that offer ways to store computer data.

When it comes to your insurance coverage, all businesses should make sure their policies include:
* Sufficient coverage to rebuild the business property and replace all merchandise.
* Coverage to protect the personal property of employees while at the business location.
* Enough insurance coverage to keep the business operating during the recovery period.

A good source for additional information is the Insurance Information Institute: http://www.iii.org/