Earthquakes, fires, floods—disasters happen all the time.
Whether man-made or from Mother Nature, unexpected catastrophes are
less likely to defeat businesses that have effective
disaster-preparedness plans in their back pockets.
While it may seem too early to worry about the worst, protecting
your business as soon as you launch it is actually the wisest
course of action. An entrepreneur's first step, according to
experts, is to ask yourself what you would do if you couldn't
occupy your offices. How would you contact employees? How would you
reach your clients? What kind of insurance coverage will you need
to ensure you can do all these things?
Business-interruption insurance and records reconstruction are
good policies to look into, according to experts. Says Gary W.
Eberhart, executive vice president of the National Association of
Professional Insurance Agents in Alexandria, Virginia,
"[Insurance agents] can be your partners-they can help you
come up with a plan."
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And although disaster insurance coverage can be costly,
especially after 9/11, a few efficient, less expensive ways can
protect your business, too. Back up all your crucial data and keep
those files off-site in a safe place. But be sure to check on them,
experts say.
"Periodically retrieve those backups and make sure they are
complete," recommends Larry Baye, director of Business
Continuity Services at Grant Thornton LLP in New York City.
You should also make copies of important paperwork such as
customer contracts, employee information and legal documents, and
keep those off-site as well.
Finally, you should do your homework and make sure that each of
your outside vendors also has a disaster plan lined up.
According to Baye, "A lot of startups are dependent on
outside parties, and they really haven't done much due
diligence—they never really inquire whether or not the third
party has any [disaster] coverage in place."
Disasters can be nightmares, but, with the right contingency
plan, your business can and will survive even the worst of
circumstances.
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