How to Prepare Your Business for a Natural Disaster

Apr 18, 2011

The news has been filled with disaster coverage, from last weekend’s tornadoes in the Southeast to last month’s earthquake and tsunami in Japan. How would your business be impacted by any disaster?

Small business expert Rieva Lesonsky discussed disaster preparedness in a recent article for Grow Smart Business.

“[A] disaster doesn’t have to be a 9.0 on the Richter scale to affect your business in just as damaging a fashion,” she wrote. “A burst pipe that floods your building or a fire that breaks out in your office park can have devastating effects if you’re not prepared.”

How can you ensure your business is prepared?

Lesonsky suggests creating a disaster plan, creating a communication plan, backing up your data, making sure you’re covered and making purchases from multiple suppliers.

Ensuring that you have the correct insurance for your business is also imperative, according to Robert Jewell, whose trim shop, Main Street Upholstery, was completely destroyed after a thunderstorm caused a tree to fall on it.

“When I got my business insurance, the agent told me that my homeowner’s insurance would take care of the structure portion of my garage even though it was a business,” he said. “[I] came to find out that your homeowner’s doesn’t cover a separate garage when there’s a business inside. You need a business structure policy.”

To read more about the natural disaster that destroyed Jewell’s business, and how he recovered from it and reopened, click here.

To read the complete Grow Smart Business article, click here.