September is National Preparedness Month, making it a great time for businesses to take a closer look at how prepared they are for the unexpected. While no business can predict exactly when an emergency will happen, having a plan can make it easier to respond, protect employees, reduce damage, and get operations back on track.
An emergency could take many forms. A severe storm, fire, power outage, cyberattack, equipment failure, or other unexpected events could temporarily disrupt your business. The key is knowing what you will do before you need to do it.
Here are several areas every business should consider when reviewing its emergency preparedness plan.
Identify the Risks Your Business Faces
Every business has different risks. A restaurant may need to prepare for a kitchen fire or refrigeration failure. A contractor may need a plan for equipment damage or a vehicle accident. An office may be more concerned with power outages, severe weather, or a cyber incident.
Start by identifying the emergencies that are most likely to affect your business. Consider your location, building, equipment, employees, industry, and day-to-day operations.
Once you know what you are preparing for, you can build a plan around those specific risks.
Create an Emergency Communication Plan
During an emergency, communication is critical. Employees should know how they will receive information and who is responsible for communicating with staff.
Make sure you have current information for employees, key vendors, customers, building management, emergency services, and other important contracts.
Consider how you will communicate if your normal systems are unavailable. If your phones, internet, or email are down, having an alternative communication method can be extremely helpful.
Know How To Respond To Severe Weather
Severe weather can cause significant damage and interrupt business operations with little warning. Review how your business will respond to thunderstorms, high winds, flooding, winter weather, and other hazards that may affect your area.
Make sure employees know where to go during severe weather and identify safe areas within your building. If your business has outdoor employees or operates vehicles, establish procedures for deciding when work or travel should be delayed.
Prepare for Power Outages
Power outages can bring operations to a standstill. Consider what equipment, systems, and services your business depends on and how long you could operate without electricity.
If you use a generator, make sure it is properly maintained and operated according to manufacturer and safety guidelines. Keep critical equipment protected from power surges and make sure employees know what to do if the power goes out.
Businesses that rely on refrigeration, specialized equipment, security systems, or other electrical systems should have a plan for protecting those assets and minimizing losses.
Protect Important Business Information
Your business’s important records need to be protected from physical damage and digital threats.
Keep backups of critical files and information, and make sure backups are protected and accessible if your primary systems become unavailable. Important documents may include financial records, customer information, employee records, contracts, inventory information, and other operational data.
Cybersecurity should also be part of your emergency preparedness plan. Employees should know how to recognize phishing attempts and other common cyber threats, and your business should have procedures for responding to a suspected cyber incident.
Know How You Will Continue Operating
An emergency does not necessarily mean your business has to stop completely. A business continuity plan can help you determine how you will continue essential operations if your normal location or systems are unavailable.
Consider questions such as:
- Where could employees work if your building is inaccessible?
- How would you communicate with customers?
- What vendors or suppliers are critical to your operations?
- How would you access important records?
- Which business functions need to be restored first?
Thinking through these questions ahead of time can make a difficult situation much easier to manage.
Review Your Emergency Supplies
Make sure your business has basic supplies available for emergencies. Depending on your workplace and operations, this could include first aid supplies, flashlights, batteries, emergency contact information, fire extinguishers, and other necessary equipment.
Employees should also know where emergency supplies are located and how to use relevant safety equipment.
Review Your Insurance Coverage
Emergency preparedness should also include reviewing your insurance coverage. Your insurance can play an important role in helping your business recover after a covered loss, but the right coverage depends on your business’s unique risks.
Consider whether your current policies adequately address your property, equipment, vehicles, liability, business income, and other exposures. If your business has changed since your last insurance review, your coverage may need to change with it.
Business interruption or business income coverage may also be an important consideration. A covered loss could force your business to temporarily close or limit operations, creating expenses and lost income even after the immediate property damage has been addressed.
Test Your Plan
Having an emergency plan is only the first step. Make sure your employees understand it and know what they are expected to do.
Consider conducting an emergency drill or walking through different scenarios with your team. Look for gaps in your plan and update it as your business changes.
Review your plan regularly and make sure contact information, emergency procedures, employee responsibilities, and other important details remain current.
Prepare Today. Stronger Tomorrow.
National Preparedness Month is a reminder that emergency planning should not be something you think about only after a disaster happens. Taking time to prepare now can help your business respond more confidently and recover more effectively when the unexpected occurs.
At Gannon Associates Insurance, we understand that protecting your business means looking beyond the policy. We work with businesses to help identify their risks and develop insurance solutions designed around their unique needs.
