ULTIMATE BUSINESS CONTINUITY AND DISASTER PLANNING GUIDE
It is essential for business owners to be proactive in preparing for pandemics, hurricanes and other unpredictable disasters. Everything from severe winter storms, to a flood or wildfire, a supply chain failure, a serious SARS or flu epidemic, even an act of terrorism can put your business at risk of shutting down—either temporarily or permanently.
Pre-disaster, your Fuoco Group and TFG professionals can assist you in evaluating risk to reduce exposure, and do a business impact analysis in order to create an action plan to minimize disruption. We can help you put financial controls and safeguards in place to mitigate financial impact and loss.
Post-disaster, your Fuoco Group and TFG professionals can assist in the preparation and filing of documents to support casualty claims, and FEMA forms, as well as prepare the paperwork for the deduction of losses on tax returns. Need help with adjusters? SBA loan applications? We can assist with the process of applying for available governmental assistance, and work with the IRS to refund your estimated tax payments if qualified.
Planning for the survival of your home and providing for the safety of your family is a priority, but you also need to create a survival plan for your business. Not sure how? Below are the 5 easy steps we recommend to take to keep employees and customers safe, protect your property and important data, as well as continue operating on site or remotely, or finally resuming operations once the incident has safely passed.
Realize that not everything will be under your control in a serious emergency since local/state/federal governments will intervene. You need to be prepared to respond with remote capabilities in case of a blanket ordinance for shutdown, whether due to health or physical safety concerns. In this day and age it behooves business owners to embrace the “cloud” and technology that allows your leadership team and all employees to communicate with each other and service clients from anywhere at anytime.
STEP ONE:
Your workplace should always be a safe environment, as well as squeaky clean and free of germs. In the case of a similar pandemic like the Coronavirus, or lesser threat similar to previous outbreaks such as SARS, H1N1 epidemic, or a severe flu season, large numbers of employees in critical positions could be at risk. With newly expanded leave laws across the nation, your business operations as well as your pocketbook could also be at risk.
Update employment handbooks with detailed health and wellness information as well as workplace safety procedures, including written guidance on best practices. Familiarize yourself with OSHA and CDC pandemic/epidemic recommendations, encourage proper hygiene on the work site as well as physical safety protocols, and step up cleaning and disinfecting of high touch surfaces to several times a day.
Provide masks and gloves for both employees and visitors during an outbreak, and insist on social distancing. Install hand sanitizer stations, and be sure cleaning products are those which also kill viruses in addition to bacteria and other germs. Encourage digital, online meetings where and when possible instead of face to face ones while the threat persists.
Finance, consulting, real estate, engineering, technology, and administrative services companies are more likely to have employees who can telecommute while waiting out an epidemic. Physical occupations like construction, manufacturing, distribution and transportation, etc., may have to wait until their physical locations/work restrictions are lifted to call workers back and implement possible safety measures in addition to those above such as alternating work schedules.
For business like retail, restaurants, hospitality, and healthcare, install Plexiglas guard screens where possible, limit the number of visitors allowed in your establishment at one time to observe social distancing, and discourage employees who are ill or exhibit symptoms to remain home, especially those with fever. Where possible allow online ordering and pick up or delivery.
Those deemed “essential workers” may not all have the luxury of working from home, especially those in healthcare. This is where on-site protocols and protections, and limiting of patients become extremely important, and the use of telemedicine or telehealth may be of benefit in decreasing exposure for both healthcare professionals as well as patients. It the case of any disaster, it might be wise to set up a “buddy system” with another healthcare practice in another location or an affiliate agreement in order to use office location and phone lines.
STEP TWO:
Protect important data, documents and information on a regular basis. Digitally store important information, client and employee records, financials, and secure hard copy documents in an alternate, accessible off-site location. Scan whatever you can into your system for extra safety, especially items that are not easily re-produced such as insurance papers, legal contracts, tax returns, and accounting statements.
Perform routine backups of all systems as a best practice, and please TEST your “recovery” system. Ascertain that firewalls and other protections are in place and will continue working in a crisis as that is when crooks become active!
Make a handy hard copy list of contacts with phone numbers and emails crucial to business operations, such as key employees, banks, lawyers, accountants, insurance agents, etc. Include the FEMA Tele-Registration Hotline (good for any area or state, they will direct you): 1-800-621-3362, and download the FEMA app to your phone: https://www.fema.gov/mobile-app. You can also apply for assistance here: https://www.disasterassistance.gov/. You may also need financial help or other support from the Small Business Administration (SBA): https://www.sba.gov/funding-programs/disaster-assistance. The SBA provides Physical Disaster Business Loans and Economic Injury Disaster Loans for Small Businesses.
Now is the time to review your insurance coverage for all types of damage and business interruption coverage. Also take time for the following:
• Be sure to discuss disaster planning with your employees – create a chain of command, and have your emergency plan, policies, and evacuation procedures in your employee handbook. Review them when warned of an approaching storm, epidemic, or security alert of any kind. Run drills periodically. Know who is certified in CPR.
• Do a “pre-emergency” walk around the building, work site or office and take photos to document conditions, do so inside as well. A “before” picture is worth a thousand words, especially if compared to an “after” photo when dealing with insurance companies.
• Remove and relocate valuables or fragile items.
• Remove flammable materials or combustibles.
• Choose a clean-up or restoration company ahead of time.
STEP THREE:
Power outages, flooding, heavy winds, fire, explosions, disasters of any type or cause may mean business STOPS, and customers cease calling as well. Contact your insurance agent immediately about business interruption coverage in the event of inability to operate due to damage or loss, ordered closures, etc. Check on liability insurance in case you are sued by clients! You may also want to consider:
• Deciding on a back-up location where your business could run smoothly if damages occur. Also review who has the proper equipment and capability to work remotely if necessary.
• Redirecting your phone lines and/or order lines.
Protect your building, office, electronics and equipment:
• Put up shutters or plywood.
• Check the roof for leaks.
• Remove tree branches or debris that might become projectiles in the storm.
• Anchor large/heavy equipment and cranes, and brace large pieces of office furniture, shelves, filing cabinets, etc.
• Remember to secure outdoor items like signs, equipment etc.
• Make any necessary repairs now – if there are broken windows, missing tiles on the roof, it might save you from water damage later.
• Wrap office equipment like VOIP phones, copy machines and computers in plastic to protect against water damage.
• Get computer towers off the floor, protect or disconnect wiring, arrange for IT or computer support for users or equipment that needs to remain operational. Don’t forget to check surge protectors and battery backups.
• Consider utilities – disconnect electric, gas etc. if appropriate. Remember this may affect your alarm or security system.
STEP FOUR:
After the business is secured, be sure to allow enough time for employees to attend to their homes and families as well.
Make sure security measures are in place not just for your network but also for your physical location, inventory, storage areas, distribution centers etc., to prevent shortage or looting.
Monitor conditions, closings, curfews and evacuation instructions through all possible channels.
Gather safety supplies, as well as 3 days’ worth of water and non-perishable food and snacks for employees if and when they can return to the office. Remember also, if and when a sudden disaster occurs, there may be a period unexpected confinement.
Be sure to:
• Have a generator available with enough gas. Have company vehicles gassed up too.
• Arrange for plenty of backup cell phone chargers and extra battery packs.
• Buy extra flashlights, battery operated fans, and plenty of batteries in all sizes.
• Have several first aid kits, a tool kit, and plenty of tarps and blankets available.
As soon as it is safe post storm or disaster, assess all damage inside and outside. Do take photos to compare to before pictures as discussed above. Call your insurance agent to start the process and get necessary permissions and estimates. Initiate the clean-up of the work-site. Do not turn on computer equipment if there are indications of power fluctuations, low air conditioning output, water on the floor, broken windows, or if damage is apparent. Safety in the workplace should never be overlooked. Depending on the severity of the situation, be as flexible as possible scheduling employees to return to work should they have property or family issues to resolve first.
STEP FIVE:
Understand the elements of risk and the resilience needed so that disruption does not damage your brand or operations, or your employees.
Get educated on insurance options available for small businesses:
• Extended Business Income: Additional coverage extends the “period of restoration” to the time at which business activity has fully recovered.
• Extra Expense: This covers necessary expenses incurred during the “period of restoration” and could include not just rental expense for a temporary location, but also the cost to transfer office contents there, as well as preparing/painting/partitioning the temporary location. Add to that office equipment rental pending permanent replacement of destroyed equipment, and the expense of moving back to your permanent location. Additional expenses might be bonuses and allowances paid to regular employees for travel and overtime, or payroll for temporary employees. Additional fees to expedite shipments could also be included.