Do You Have A Hurricane Recovery Plan For Your Business?
If you are running a business within a zone that is prone to hurricanes, it is essential for you to put together an efficient hurricane recovery plan. This can help you to salvage as much of your assets as possible to mitigate cleaning and restoration costs. If you do not already have a plan on hand, here is what we have put together to help you manage the consequences of an emergency situation.
What is a Hurricane Recovery Plan?
A hurricane recovery plan consists of a set of business procedures that is documented with an aim to respond to a hurricane. Such a plan can be comprised of protocols to tackle a series of weather events from its beginning towards the end. The steps are as follows:
- Preventative steps to anticipate and alleviate the aftermath of a hurricane
- Emergency response procedures to warrant safety in the event of an emergency
- Immediate steps to bring back essential business operations
- Long-term processes to establish full recovery
Why a Hurricane Recovery Plan is Important
Hurricanes are among the most destructive catastrophes within the United States. On top of the danger posed by the natural disaster to the human population, businesses also are put at a risk. It is estimated that the damage from hurricanes can accumulate to approximately $28 billion a year and nearly half of the economy in the United States is vulnerable to hurricane damage. However, it is not just the damage costs that businesses need to worry about. When hurricanes happen, major disruption of business operations can happen and some companies may never recover.
Forced Out of Business
As much as 40 to 60 percent of businesses nationwide never re-open after a natural disaster takes place. The key factor that determines the chances of a business’ survival is how quickly they can respond. If operations cannot be reinstated efficiently, the business could be closed down for good. It is also found that 90 percent of smaller businesses fail within a year if proper hurricane recovery failed to be implemented within 5 days of a natural disaster. This is why a hurricane recovery plan is highly crucial and needs to be put together at an early stage.
How Hurricanes Affect Businesses
The reason behind hurricanes getting the most coverage in the news is because they are shocking. The destruction that they cause is often massive and frightening. However, the associated physical damage is just one of the many ways that a hurricane can inflict to businesses. Below are some of the other types of damages posed by different disasters:
- Wind damage
- Shortage of staff
- Utility and electricity outages
- Server / infrastructure damages
- Transportation disruptions
- Damaged hardware that causes data loss
- Restricted building access
Each of these damages affects your business operations in different ways. However, the impact of the damage to individual operation may differ in terms of scale. Regardless of the extent of damage, there is bound to be a certain sum of damage costs that your business needs to cover. To mitigate the damage costs inflicted by a hurricane, assemble a proper hurricane recovery plan early.