Developing a Workable Disaster Recovery Plan is Critical for All Small Business Owners
One of this region’s most expensive disasters unfolded the night of Sept. 9, 2013 when over 10 inches of rain fell in a 24-hour period, devastating Boulder, Colorado and several other communities with flash floods, inflicting damage on nearly 20,000 homes and hundreds of small businesses.
Unfortunately, our region is prone to a variety of natural disasters such as flooding in North Dakota and Wyoming, tornadoes in South Dakota, and wildfires in Utah & Montana that have scorched millions of acres of land.
Statistics show 25 percent of businesses that close because of disaster never reopen. Small businesses are especially at risk because few have the resources to assess their risks and develop recovery plans for the future. As part of its mission to help small businesses start, grow, and succeed the U.S. Small Business Administration can help when it comes to disaster preparedness and recovery. Start with these six simple tips:
1. Evaluate your exposure. Know your region and the types of disasters most likely to impact your business. Consider your facility’s proximity to flood plains, wildfire areas, rivers and streams, dams, nuclear power plants and other hazards.
2. Review your insurance coverage. Now is the time to consult your insurance agent to determine whether your coverage is sufficient. Make sure you understand what’s covered by your policy, and determine if you need flood insurance; remember many general policies do not cover flood damage. Check into business interruption insurance, which helps to cover operating expenses if you’re forced to temporarily close. Calculate the cost of business interruptions for a day, week, month or more. To the extent possible, set aside a cash reserve that will allow your company to function during the recovery phase.
Developing an effective and workable disaster recovery plan is critical for all small business owners. For more information on disaster planning go to www.sba.gov/disaster.
Source: UtahPulse.com, Article written by Stanley Nakano, published on June 11, 2015
For help with Government Contracting: contact your nearest Procurement Technical Assistance Center (PTAC). Funded through Cooperative Agreements between the U.S. Department of Defense and state and local governments/institutions, PTACs provide free and low-cost assistance in virtually all areas of government contracting.