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Check the news, and you’ll see disaster in one form or another. No matter how seemingly remote, those fires, floods, hurricanes, civil disturbances, earthquakes, or even acts of terrorism could affect any one of us.

Prudent people know the importance of preparation, and they will carry insurance on their homes and property. Important as that is, no insurance can protect you from the business problems that disasters can bring.

In the aftermath of the 9-11 attacks, the U.S. government established Ready.gov, a web site that’s designed to help individuals and businesses prepare for disasters. With proper preparation, damages from most catastrophes can be minimized or avoided. Ready.gov is only one such site where you can find helpful tips, but it’s a good place to start. The site offers portals for both individuals and businesses.

For individuals, information covers ways to protect yourself, your home, family and personal possessions in the event of any of a multitude of major catastrophes, such as hurricanes, floods, fires, civil unrest, disease, and more. Specific tips are offered on ways to avoid such problems, and on what to do should they occur. Also offered are tips for protecting valuable items, and on supplies to have on hand. On the business side, you’ll find many specific ideas that can help you avoid business interruptions or losses.

The Small Business Administration (SBA) also provides lots of information for small business owners who face potential disasters (www.sba.gov). Information includes a detailed overview of potential problems and solutions. (See its 73-page “Disaster Recovery Plan” at http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_da_disastr_revcovery_plan.pdf.) The Agency also offers help in securing disaster recovery loans.

Other helpful resources include:

FEMA (Emergency Management Guide for Business and Industry)

http://www.fema.gov/library/viewRecord.do?id=1689

American Red Cross (Preparing your Business for the Unthinkable)

http://www.redcross.org/services/disaster/0,1082,0_606_,00.html

Institute for Business & Home Safety (IBHS) (Open for Business: A Disaster Planning Toolkit for the Small to Mid-Sized Business Owner)

http://www.ibhs.org/business_protection

Centers for Disease Control (Emergency Preparedness for Business)

http://www.cdc.gov/niosh/topics/prepared

More than offering good advice, these sites are designed to fire one’s imagination and common sense. Suppose, for example, that someone breaks into your home and steals your computers. Do you have copies of the information stored in those computers? Do you have other equipment you could use in the meantime? Or can you obtain adequate replacement equipment quickly? Do you have the resources to do so? Or is your credit card already maxed out?

The possible scenarios are legion, and only you can envision the possibilities that pertain to you. But have you done so? If not, wouldn’t it be wise to develop a written plan for dealing with such emergencies?

Drafting your Emergency Plan

Set aside time to list the potential emergencies you might face. Some, such as fire or flooding are obvious. Others might be less obvious, such as sudden credit crunches, illness ,or family emergencies. Will you have whatever resources you might need? And even so, how will you keep up with your business? Once you’ve noted potential difficulties, brainstorm for solutions. List priorities in order of importance, and note key details.

Your plan should cover:

·                  Disasters that could impact your business

·                  Individual responsibilities

·                  Supplies needed and available

·                  Plan for evacuation

·                  Shelter locations

·                  Emergency contact information

·                  Important contacts such as partners, customers, suppliers, and information sources

Other considerations include:

·                  Security plans for computers and records

·                  Business continuation plan (Such as new equipment and location)

·                  Plan for fire safety

·                  Plans for protecting property and equipment

In preparing your emergency plan, you will force yourself to think carefully about how you will deal with emergencies before they strike. Those thoughts should then be written down in an organized, concise manner and periodically reviewed so you’ll know what to do when the time comes. You won’t need to write your plan from scratch. Many online sources, such as those already listed, will give you a blueprint from which you can develop your own emergency plan.

Finally, ask yourself what problems would be intolerable, and address them first. Have a backup plan in case the first plan doesn’t work. For example, if you need to move yourself and your equipment to another location, consider what steps you would need to take, and where you would go if that first option is not available. For specific examples see the sites mentioned above.

Computer Security

Your computer is probably one of your most vital business tools and assets. But what would you do if the disk crashes or if the computer was lost or stolen? Here are some tips:

1.      Keep your computer clean by using the best firewall/spyware/virus protection you can find.

2.      Purge unnecessary files and downloads. The more you carry, the slower your system will run, and the more likely you will develop problems. Set aside time each week for computer cleaning.

3.      Copy important materials onto disk and/or a backup hard drive. Important material should be backed up on at least two alternate sources, with one of those sources kept at a different location. You might also e-mail important materials to a computer at another location. Be careful about e-mailing valuable material, or anything you don’t want a “spymaster” to see.

4.      Protect your computer from power failures or lightning with UL-listed surge protectors and battery backup systems.

Financial Preparations

Your top priority will probably be your financial plan for disaster recovery. Will you have the resources to get back on your feet? And where will you get them?

Cash & Credit

To provide for personal and business needs, you’ll need ready cash and credit. Keeping traveler’s checks and cash is a good idea in the event of a local emergency when bank access could be limited. Keeping your credit cards clean is also important, should you need that credit for an emergency.

Insurance

The importance of good insurance coverage cannot be overstated. Whether you own your home or rent, find out what types of coverage you need as a self-employed person. Renters should carry renter’s coverage, which is usually very inexpensive. Don’t depend on the landlord’s insurance to cover your needs. It probably won’t.

Find out if your homeowner’s or renter’s policy covers you for floods or earthquakes, which are usually excluded on homeowner’s policies. If you want to obtain special coverage, contact National Flood Insurance Program at (http://www.fema.gov/business/nfip)for more details.

Above all, get specific input about your home-based business establishment. You might need additional coverage beyond a regular homeowner’s policy. One possibility might be an “umbrella” policy which offers coverage for a wide variety of risks.

Take an Inventory

The best way to prepare for a potential insurance claim is to take a detailed inventory of your most important possessions, including information on values, purchase dates, and so on. Always keep purchase receipts for anything of importance as long as you can in a safe place, such as a safe or fire-proof file cabinet. For most important things, keep original receipts in a safe deposit box, and extra copies at your home office.

Many people recommend videotaping your property and possessions in advance. Many video cameras also provide audio options which allow you to talk while you’re taping, identify yourself, and indicate the date of the recording. If you can copy the tape, do so and store that copy in a safe, separate place. This will provide good evidence, should you need to file a claim. Once your inventory is completed, leave a copy at another place other than your location, so it won’t be destroyed in a loss.

Understand that insurance companies typically carry deductibles which apply to each incident. They will also depreciate various items. For instance, if you lose your computer due to damage, and it’s one year-old, they might deduct 10% or more off the original price due to age. Keep in mind that insurance is not designed to restore you dollar for dollar, but to protect you from catastrophic loss by compensating you for the lion’s share of a major loss.

The amount you collect, and the speed with which you will collect it, will be determined by how well organized you are, and by how well you cooperate. HBM

Christopher J. Bachler is a 20+-year veteran business writer and editor, based in Drexel Hill, PA.