Weathering the aftermath: Is your small business ready for a hurricane?

We don’t have to tell you that owning a small business is demanding. You’re not only the CEO or president, but likely responsible for marketing, human resources, IT, accounting and facility maintenance, and during a hurricane or severe storm, responsible for crisis management too.

Natural disasters have a pronounced economic impact on small businesses. Research done by JPMorgan Chase after Hurricane Sandy suggests an estimated 25% to 40% of small businesses impacted by a similar disaster will fail shortly thereafter, a rate much higher than the 10% annual nationwide rate for employer small businesses that same year.¹

Taking steps to secure your business before a hurricane might be the difference between opening after a hurricane or packing it in. Having commercial insurance in place is step one to making sure you’ll be on the path to recovery after a storm strikes, but there’s plenty more you can do to prepare your business before a hurricane hits. Follow these six steps to protect your business, employees and customers.

Check your insurance policy

Before hurricane season starts, review your commercial insurance policy. Do you have the right coverages? Has anything changed about your facility or business since you purchased the policy? If so, you may need to update your policy. Once a hurricane or tropical storm begins brewing, insurers will issue a moratorium or hold on new insurance policies. You won’t be able to purchase coverage or change existing policies during a natural disaster. So don’t wait. Insurance is your business’s best protection against severe weather.

Create a business continuity plan (BCP)

Severe weather is just one thing that can disrupt your business. The right business continuity plan (BCP) outlines the critical information your business will need to operate during an unplanned, disruptive event. BCPs document the steps necessary to ensure your employees’ safety and maintain business operations. Thoughtful plans address communication before, during and after a storm, how to close facilities for several days or shift to remote work to maintain operations and outline how updates about the business should be addressed with customers and employees. Depending on the size of your business, you may also have a business continuity committee that meets regularly to prepare for and navigate disruptive events.

As part of your BCP, you’ll want to outline how to secure your facility and data. Cyber security is always a part of business continuity but even more so during a pending disaster. If your business is in the path of the storm, you may be unable to get to your location for several days or more. Make sure you can access business documents without relying on paper. This is critical if you can’t get on site to have access to proprietary information, and important to prevent intel from being lost or damaged. Electronic or cloud backup of information should also be part of the plan.

Monitor the storm

When severe weather is threatening, monitor the forecast and follow the advice of local authorities. Hurricanes and tropical storms often change course, speed and strength before landfall. Determine a date and time for when you’ll decide whether you’ll need to close your facility and stick to it, even if the storm path shifts. It’s better to have a plan and eliminate confusion with changes. However, as the situation evolves, you’ll need to be flexible with your ongoing response.

Prioritize safety

The safety of your employees and customers is your priority — make sure your actions and communications convey this. For those directly impacted, let them know how they need to communicate with you or their manager about their status. What resources can you offer to help them prepare for the storm or recover from a disaster?

Over-communicate

In crises, you can’t communicate too often. What do your employees and customers need to know before, during and after the disaster? First, prepare impacted employees with direct and individual communication. Then, let all other employees know what the company is doing for their colleagues. With contractors, contact their employer who should take the lead in communicating with contracted team members.

During the storm, stay connected with those being directly impacted. After the storm, help affected employees with resources and advise colleagues about how they can help. Will you provide paid time off for associates to volunteer their time for cleanup? Can you recommend local groups that are accepting donations or supplies? Throughout the whole experience, keep customers informed about how your business will be operating considering the crisis or natural disaster.

Reopen, when the time is right

When the immediate crisis has passed, and local authorities have determined that it’s safe for areas to begin opening, take precautions. Before inviting employees back after a storm, ensure your facilities are not only functional but safe. A site survey is the best way to evaluate the building and area before notifying your employees that they can return.

You won’t be able to prepare for all the unexpected aspects of a crisis or severe weather event. With some pre-planning and thoughtful steps taken before a storm approaches, you can be confident that your business will be protected and that the people who operate it will be safe.

1. https://www.jpmorganchase.com/institute/research/small-business/report-bend-dont-break