Is Your Business Ready for a Natural Disaster?

Not every business will have to weather a natural disaster, but in the event that it happens, you need to be prepared. The reality is 25% of businesses that experience a natural disaster don't operate again afterward.

Natural disasters of all kinds can completely ruin your business if you aren't prepared. If you hope for the best, but plan for the worst, you should be able to recover from whatever Mother Nature may throw at you.

Identify Natural Disaster Risks in Your Area

Each geographical area is prone to different types of natural disasters. If you live in a landlocked state, you wouldn't prepare for a hurricane, but you might need to plan for a tornado.

Take the time to figure out what kind of natural disasters you can expect. Maybe your area is prone to earthquakes. But can you withstand torrential rainfall, even if it isn't likely to happen? You'll want to plan for any type of disaster that could possibly happen.

 

Make sure all of your employees are educated on what to do in each type of emergency.

 

Create an Emergency Response Plan

Once you've identified the types of disasters that could affect your business, you need to create an emergency response plan.

In this plan, you'll want to detail all of the disasters and each of the circumstances in which they could occur. The more you plan, the better it will be if any of these disasters do strike.

Make sure all of your employees are educated on what to do in each type of emergency. The more they know what to do, the less likely they are to panic and cause complications should your company be hit with the worst.

Talk to Your Insurance Provider

Many insurance companies have documentation concerning natural disaster coverage. If you currently don't have a plan that will help you recover the tools and assets you rely on to operate on a daily basis, consider adopting one with your insurance company.

Your insurance provider should be able to walk you through your current natural disaster coverage. Make sure that whatever you have will cover your needs completely, no matter what comes your way.

Use Cloud-Based Asset Management Software

Relying on a cloud-based asset management software to store your sensitive company information is a great way to emergency-proof data your business relies on.

Regularly using asset management software is also a great way to show insurance proof that items you may have lost in a natural disaster are indeed assets your company needs to operate. You can show your records to your claim adjuster, who can take all of that information to insurance so you can get the relief you need to rebuild.

Seek Out Other Disaster Relief

Insurance may not be able to cover all of your bases. You'll want to consider a backup plan in case insurance doesn't cover damage caused by a natural disaster.

SBA Disaster Loan

One great option to consider is an SBA disaster loan. This low-interest loan is available to businesses of all sizes and non-profits. You can use this loan to repair business assets, equipment and machinery, inventory, and real estate.

You can apply for this loan at the US Small Business Administration's website.

Have a Business Disaster Recovery Plan

You don't want to be spending valuable time after a disaster trying to figure out what you need to do. Creating a business disaster recovery plan ahead of time is a smart way to make sure you have clear steps you can take after the emergency is over.

Figure out how you will recover any lost or damaged fixed assets recorded in your database. These assets should be one of the first steps you take in recovery since your business relies on them to continue functioning.

Experiencing a natural disaster is a life-changing event that's hard for any business to recover from. But it doesn't have to put you out of business completely. Take some time to plan ahead and be prepared for whatever might come your way.