Business Preparedness Plan
Almost half of all business do not open back up after a disaster. Knowing how to prepare and respond to a disaster can help to limit the amount of loss that your company deals with. Putting a business plan in place can help to protect your business in case of an unavoidable interruption. Keep these 6 steps in mind to help minimize the effect of business interruptions.
- Figure out your risks – when you are determining the risks that may affect your business, consider both human and environmental risks. Also, take into consideration risks that you can avoid, as well as risks that are unavoidable. Once you know what risks you are dealing with, you can start to prepare.
- Calculate the costs of interruptions – once you know what risks you are facing, you will have a better idea of what each disaster will cost your company. Make sure to consider the increased expenses, lost income or sales, delay of business, and regulatory fines that can come along with a disaster.
- Fully understand your insurance – look over all of your commercial insurance policies to see just what disasters they will cover and the amount of coverage that they will provide. Also consider what will not be covered to see if you need to invest in any additional policies.
- Implement mitigation and prevention steps – find ways to control and contain any potential hazards that will hit your business though prevention, deterrence, and mitigation.
- Create a communication plan – after a disaster, you will need to keep your customers and employees up to date with what is happening. Creating a communication plan is the best way to ensure that everyone stays in the loop.
- Create an emergency plan – your emergency plan should be practiced by each employee a few times a year to ensure that they will know what to do in case of a disaster.