Business Continuity For Small Businesses
When a disaster strikes, many small businesses are not prepared to survive the business interruption afterward. Loss of income, replacement/rebuilding costs and reputation are just some of the things small businesses need to be aware of in case of a sudden disaster.
As an example after Hurricane Sandy ravaged the Atlantic coast between 60,000 and 100,000 businesses were affected—30 per cent of them closed their doors for good. In fact, it costs a small business on average around $3,000 a day during a temporary closure.
Because of this, it is in a company’s best interest to remain conscious about business continuity for small businesses. Talking internally and with third party experts about business continuity for small businesses and ultimately creating a business continuity plan for all common hazards is a great way to stay prepared.
How To Start Talking About Business Continuity For Small Businesses
First, identify the special hazards that your business may face so that you can develop a way to respond. Some of the most common hazards are dangerous materials, technical emergencies, fires, floods, winter storms, tornados, earthquakes and hurricanes.
Your next step is to implement a business continuity plan addressing each hazard. Implementation means more than simply exercising the plan during an emergency. It means acting on recommendations made during the vulnerability analysis, integrating the plan into company operations, training employees and evaluating the plan.
Emergency planning must also become part of the corporate culture and discussing business continuity for small businesses internally & externally is something that should be encouraged. Look for opportunities to build awareness, to educate and train personnel, to test procedures, to involve all levels of management, all departments and the community in the planning process and to make emergency management part of what personnel do on a day-to-day basis.
Contact ALIGNED Insurance today for more resources on business continuity for small businesses and how our products and services we can help you & your organization through your most trying times.
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Sources: Adapted from Risks Insights © 2017 Zywave, Inc. All rights reserved. This Risk Insights is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.