What’s worse a fire or loss of business?
Most businesses plan for disasters by purchasing insurance. It makes sense; without insurance, a fire would devastate most organizations. However, the loss of business income is often far more devastating and also much more likely to happen. Yet, it’s much less of a consideration for many organizations. So what's worse a fire or loss of business? A survey by Independent Agent Magazine yielded some tough statistics for small business owners:
- 55% said they did not have business income insurance
- 63% said they were unfamiliar with business income insurance
- 60% said they didn't have the information they needed to determine their risk
Having seen numerous organizations never regain their footing after suffering a business income loss, I am a proponent of business income insurance. However, I also believe in doing everything you can ahead of time to either reduce the likelihood or impact of a disaster affecting your business/organization. Today, the resources available for small businesses to really prepare for a disaster are almost limitless. The only part that isn’t limitless is the time most organizations have to allocate towards this. So here’s the most scaled down version of planning I can offer:
- Have a Written Plan – It does not have to be a three ring binder, but it should be a plan
- Implement Your Plan – Don’t keep it a secret
- Practice Your Plan – Things always go wrong in a crisis, try to minimize those ahead of time
- Get Outside Help and Guidance
For outside help and guidance, there is an endless supply of resources and people willing to help. To get you started, you can click here for a template to start your plan. There are also free resources to help you audit your program and prepare your facility. For example, SERVPRO now offers their Emergency Ready Profile that helps organizations prepare for
a disaster. SERVPRO will provide a complimentary assessment, create a profile document, provide you with a helpful guide and establish contacts and your chain of command. For more information, you can visit them at www.servpro.com/Ready.
Of course if there is a disaster, insurance serves as the financial means to get you back and running, but having seen numerous organizations go through disasters over 15 years in the insurance industry, those that plan and prepare almost always end up much better off than those that don’t. While it does takes time, reaching out to those that will help you ahead of time can help you not fall victim to the statistics, as more than 50% of small businesses who suffer a disaster never reopen.
If you need any assistance to help your organization Be Ready please do not hesitate to contact us at 877-352-2121.
