Would your shop survive a natural disaster?

Do you know anyone personally affected by the flooding in Louisiana? What about the wildfires throughout the Southwest, or the earthquakes in Italy? These and other natural disasters have occurred in recent months, and hurricane season is upon us.

I have a friend in Louisiana who was affected, but her situation certainly was not as bad as some. Water rose near her yard, but the house was spared. Her daughter was instructed by her employer to come to work, which involved traveling over flooded roads. She had to spend at least one night at work because she was unable to get home on these roads.

Relief efforts are underway, and it will be sometime before the area dries out and is “livable” for many.

The devastation includes small businesses that feel the brunt in terms of loss of income for owners and employees. While you can’t keep these disasters from coming, you can take steps to help prevent them from destroying your small business.

According to an article on clark.com, syndicated columnist Clark Howard’s website, after a natural disaster, such as the flooding in Louisiana, “nearly 40 percent of small companies won’t reopen, and even a few inches of flood water can cause thousands of dollars’ worth of damage. The article offered three tips for preparing your business for a natural disaster:

1. Back up your data. Should a power outage occur, you could lose important files and documents. “Despite these risks, most small businesses don't have a proper disaster recovery plan in place. The Contingency Planning and Strategic Research Corporation found that 96 percent of business workstations are not regularly backed up. Data backup will provide your business with a safeguard if a devastating natural event occurs.”

   The article recommended that if you invest in a physical backup site, choose a location that's far from your business so it won't be impacted by the same disaster. You also can back up your data in the cloud, which will enable you to access files quickly from another site.

2. Review your insurance policies. The article stated that one in three small business owners have felt the impact of storms or extreme weather and lost an average of $3,000 a day because of being closed following a natural disaster.

   ” Having an insurance policy that won't cover the cost of repairs and cleanup can make a crisis even worse. When small business owners search for a policy, most settle with property insurance that covers damage to buildings and expensive equipment. Sometimes this isn't enough. Business interruption cover, which can be bolted on to most property insurance plans, compensates a drop in income as a result of an emergency, providing you with a steady income stream as you deal with the fallout of a disaster.”

3. Apply for emergency financing. Having credit is the best safeguard. The article noted that many business owners make the mistake of applying for credit after a disaster, and often have to wait several weeks to receive any cash. However, securing an emergency source of small business financing, such as a line of credit or business credit card, as a preventive measure can provide you with the peace of mind you need if a disaster strikes your business in the future.

Good preparation also involves having an emergency preparedness program to protect lives. Several articles on thefabricator.com have addressed this topic. Among them are “Emergency preparedness: A critical safety program component” and “Is your company prepared for the worst.”

Preparation is key. Make it a priority.