Protect Your Business with a Disaster Readiness Plan

Prepare for Disruptions — Even from Faraway Events

About a year ago, a volcano erupting in Iceland virtually shut down air travel in Europe. Thousands of flights were canceled, stranding travelers and grounding the 11,000 tons of goods that are normally flown daily between Asia and Europe.¹ Businesses suddenly faced shortages of goods and materials because of a faraway natural disaster — a reminder of the need to prepare for a range of emergencies.

Your company may have been unaffected by the Icelandic volcano, but the risk of disaster is always looming. Most people think of hurricanes, tornados, and earthquakes, but a fire in the break room or a flood in the warehouse can also cause operations to come to a grinding halt. By one estimate, one-quarter of businesses never reopen after a major calamity.² Taking some basic steps now could help you avoid a similar fate.

Stay covered. Even though you probably have insurance, it’s important that your coverage keeps pace with company changes. Updating your policy as you add equipment and other capital expenditures may help you reduce uninsured losses.

Point and shoot. Taking photographs of premises and property may help speed up the claims process and reduce the risk of disputes with the insurer. Backing up the photos online can help protect them from loss, as well.

Back up and protect. In this electronic age, it’s likely that you already have arrangements to back up important files off-site, preferably 50 or more miles away, with the ability to view them online. But what about records that you keep on-site containing sensitive customer and employee information? Take steps to prevent looters from gaining access to these records in the event you must evacuate.

Keep in touch. Even if your company never suffers a disaster, it may still be vulnerable to disruptions in the supply chain. Arranging for back-up suppliers, deliveries, and other important services may help prevent someone else’s bad fortune from becoming your own. It’s also a good idea to prepare a list with contact information for your employees, vendors, and others with whom you do business. Make sure your managers have copies of the list and keep them at home.

1–2) The Wall Street Journal, April 16, 2010; September 11, 2009

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

Securities offered through Securities America, Inc. Member FINRA/SIPC. Advisory services offered through Securities America Advisors,Inc. Harry Paez, Representative. CA Insurance License #0C64344

Licensed to offer Securities in CA and FL. Licensed to offer Insurance products in CA and FL. Advisory licensed in CA.

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