Surviving a disaster:
A recent trade article indicates nearly 75 percent of small businesses don't have a disaster recovery plan in place.
For companies with fewer than 50 employees, just 15% have one. Those low numbers also reflect a lack of relevant insurance coverage, with 66 percent of respondents not having business interruption insurance. These statistics had me reflecting on what can be in place to help survive a disaster:
Though not all inclusive, here a few items for small business owners to consider:
1.) Electronically documented inventory, furniture, and fixtures that are backed remotely.
2.) A phone system that is accessible remotely (VOIP).
3.) Maintain a company roster with multiple contact channels.
4.) Designate a person to be point of contact with insurance company and community.
5.) Identify locations that could be used for temporary business purposes. Revisit this list every 3 years.
6.) Last but not least, Business Income Insurance which replaces your net income and extra expenses during a loss. Helps offset ongoing costs and keeps cash flow coming into business until back up and running full speed. In a later blog post, we will visit more about coverage forms with Business Income, but it's recommended to purchase "Actual Loss Sustained" if available.
Lastly, it's a good idea to put these thoughts into a written plan whether formal or not is up the you!