Advance preparation makes disaster recovery easier
It took "two seconds," says Jeff Myers, for the roof to go at The Car Doctor, Inc., in Schaumburg, when storms raked the Chicago area in August. But quick work by Myers, manager of the business his parents own; neighbors who "ran to Menard's and bought tarps to cover our equipment;" and Kaiser Roofing, LLC, Schaumburg, whose people "put up tarps between lightning bolts," kept damages to $100,000.
If there was a benefit from that late afternoon and night, it may be that the storms served as a reminder that business-damaging disasters - wind and rain, overflowing rivers and streams, fires, prolonged power outages, even frozen pipes - can occur at any time. What's important is to take steps now to minimize losses - life, property and business - and get your business back up as quickly as possible.
Recovery starts with a disaster recovery plan, which can be pretty involved. The good news is that free help is available. More good news is that insurance can cover a good part of the cost of coming back - if you have the right coverage.
Debra Tucholski, a St. Charles-based agent for Country Insurance & Financial Services, suggests these coverages:
• Business continuity. Covers "upstream" and "downstream" losses - i.e., when a supplier goes down and can't deliver the goods your production line needs, or when Mother Nature puts a key customer out of commission.
• Business interruption. Covers lost income so you can continue to meet payroll and other normal operating expenses.
• Utility services interruption. Helps meet the expense if, for example, your production line is dead or food spoils in your restaurant's freezer because ComEd's service is out.
• Extra expenses. Covers moving to an alternate location.
• Flood insurance. Mandatory, say the feds, if you own property in a designated flood plain area. Start with your own insurance agent.
Disaster recovery planning is equally important in getting your business back up. Among the topics your recovery plan might include:
• An escape route and a gathering place where you can count employee noses.
• A key contact list that includes employees; your accountant, banker and insurance agent; suppliers; and customers. Consider a pass-worded website, where employees, suppliers and customers can go for information.
• A temporary location you can use if your facility is damaged or destroyed. Be certain employees know how to get to the location. Develop a plan that allows some to work from home.
• It's not necessarily helpful to back up computer records and store them in your office or production facility. You want safe, accessible off-site storage.
Good recovery planning assistance is available online. The Open for Business booklet offered by the Institute for Business & Home Safety, is especially helpful. Go to www.ibhs.org/docs/openforbusiness.pdf. The Small Business Administration has a disaster preparedness package at www.sba.gov. Find the disaster preparedness box on the right. Another government site, www.ready.gov, has additional information.
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