The pandemic showed businesses that disaster can strike at a moment’s notice, and poor operating conditions may persist for an undetermined amount of time. This kind of calamity makes proper organization and acquiring services such as business interruption insurance an essential part of market operations today. When a crisis strikes your business, it’s important to know how to keep things going. Here are a few tips to help keep your company in the black when even the skies are turning red!
Business Continuity Plan
A disaster can certainly slow a company down, but it doesn’t have to stop entirely. While not every crisis is foreseeable, creating a general Business Continuity Plan can help you get moving more quickly than if you started from scratch. A simple budget analysis will show the consequences of business loss, allowing your team to determine the best ways to mitigate financial damages.
Creating a plan ahead of time means you can routinely test the effectiveness of your preventative models, allowing your teams to adjust and create more comprehensive solutions to crisis-level events. Certain locations can focus on specific possibilities such as earthquakes in California or flooding in Mississippi. Having plans in place may make an unpredictable situation a manageable affair.
Business Interruption Insurance
Losing business for long periods can lead to serious damage to your bottom line. Without the right safeguards in place, a disaster may close your doors for good. Business interruption insurance is an addendum to policies that will cover your company if operations need to go on standby. Some traditional coverage includes:
- Lost Revenue
- Mortgage, Lease, and Rent Payments
- Loan Payments
- Training Reimbursement
- Relocation Expenses
To count as an interruption, a business generally has to have its doors closed for up to three days before a policy becomes active. Even so, if your business can’t get back on the right path in a short period of time, this type of insurance may be the only thing keeping your company from closing for good.
During a disaster, the most important thing you can do is keep the lines of communication open. Being able to reach employees, partners, and emergency personnel is essential to help not only keep things running smoothly but also ensure everyone is on the same page. Employees need to be contacted to discuss attendance policies and compensations, and even to keep scheduled workers out of danger.
You’ll also need to be able to stay in contact with other services, too. If you have business interruption insurance, connecting with your insurance company will help make sure they understand the current situation. They can also offer advice to help mitigate damage on-site. You might also need to get in touch with contractors to help with building upkeep while the business isn’t taking customers.
Remote Data Storage
Chances are your data is the most important asset available to your business. While data security is important, many companies still maintain their networks in-house and don’t use the cloud for their basic storage needs. When disaster hits, all of your important information may be at risk. Even accidental sprinkler activation can ruin servers, keeping your employees away from the data vital to your company’s daily operations.
Setting up a remote data storage plan will help mitigate those issues before they even become a problem. Being able to access your data from anywhere means ceasing office operations doesn’t shut down the company as a whole. Employees can work remotely while facilities are being repaired and you can rest assured that your customer’s and business’s critical information are safe and secure off-site. Without crucial remote access to your data, the best option during a disaster is to grab all of the hard drives and run!
Find Alternate Facilities
When you can’t stay open for business, it may be necessary to transpose your office to a new location, if only for the time being. Some companies can’t run without a storefront or physical location. During a crisis is the time to cash in all of those past favors as you search for a spot that will help you serve your customers’ needs.
Consult with your employees about a new location. For some, the new commute may make working in the office somewhat prohibitive, Searching for areas that are close to public transportation help to keep employees in the loop, especially if traffic has become a concern during the crisis. Check with your business interruption insurance as well since those policies may help cover the cost of temporary rental space.
Planning is the Best Life Preserver
A disaster can throw any business for a loop. Many companies were forced to shut their doors during the pandemic, but others had business plans that were able to keep them functioning throughout the crisis. Make sure your business is prepared for anything that comes. Plan ahead with data storage policies, business interruption insurance, and ideas for alternate facilities, and your company will be better positioned to weather the storm.
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