Protecting Your Business from Loss: Tips for Getting Prepared
Considering today's unpredictable weather, widespread power outages, and rampant computer viruses, have you ever thought about what you would do if suddenly forced to close up shop?
What would happen if you awoke one morning to discover that Mother Nature had leveled your business—or all your electronic files had suddenly disappeared?
Would it be business as usual…or would everything come to a screeching halt?
Thinking Ahead
Disaster is always unexpected. But as unlikely as tragedy seems, a business-interruption plan is essential to ensuring that your business functions normally.
Getting prepared means thinking ahead, so ponder these questions as you plan a loss-avoidance strategy:
- How would a disaster affect your employees' ability to return to work—or your clients' ability to interact with you?
- What impact would a natural disaster have on your physical office or building?
- Where would you go if you had to relocate your business?
- What records must you have to continue normal business operations?
Consider carefully the impact of your answers. The weight and importance of each will help you determine how extensive your business-interruption plan should be.
Getting Prepared
According to the Institute for Business & Home Safety (IBHS), approximately one-fourth of all businesses shut down by natural disaster never reopen.
This can be due to a loss of property, equipment, valuable information or inventory.
While keeping your property and casualty insurance up to date seems only logical, this is only the first step in avoiding business loss. Although inventory is not something most insurance professionals deal with, a major property or equipment loss can cause quite a financial setback.
A loss of vital data in this information age can mean your agency literally stops functioning.
But you can protect yourself, your employees and your business from loss. Once you've examined the effect a major loss might have on your agency, it's time to act.
Taking Action
The IBHS and the Small Business Administration (SBA) offer the following tips to help you prepare for the unexpected:
- Install surge protectors and an uninterruptible power-supply device on all computers in case of a power outage.
- Back up all computer files, and store copies of this information at least 50 miles from your office.
- Keep your lease, insurance policies and other important papers in a secure location.
- Post an updated list of emergency telephone numbers.
- Discuss emergency plans and procedures with your employees, and make sure everyone understands the necessity of following them.
- Keep on hand a disaster kit containing first-aid supplies, flashlights and batteries, a small supply of bottled water and nonperishable food.
- Make sure everyone knows how to turn off the utilities, and do so if a disaster strikes.
- Draft an emergency plan for contacting employees and customers, and communicate via these means in a crisis situation.
Don't let disaster spell the end of your business. Think ahead, get prepared, and take action now.
You'll avoid unnecessary loss—and keep things running smoothly and efficiently.
This information was provided by InsureMe, the leader in online insurance leads for the insurance industry. Since 1993, InsureMe has helped thousands of insurance agents succeed in the insurance business by providing top-quality leads that are both detailed and affordable. For more information on InsureMe leads, please visit our agent Web site at www.agent.insureme.com.
