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4 Steps to Prepare Your Business for Natural Disasters
Blog / Leadership / Sep 1, 2023 / Posted by Melanie Musson / 27

4 Steps to Prepare Your Business for Natural Disasters


With the recent catastrophic wildfires in Hawaii, every small business should consider their risks and take steps to protect their business, including the lives of their employees.

One of the most important precautionary steps covered below is to purchase business insurance that covers the risk of natural disaster destruction. A complete guide to business insurance can help you understand your risks and options.

Continue reading for more information on business insurance and other vital steps to prepare your company for risk.

Step #1 – Purchase Business Insurance

Business insurance is a broad term describing any type of insurance that protects businesses. It’s up to business owners to decide what kind of coverage they need. Generally, nearly every business owner should have liability insurance that covers accidents, damages, and injuries.

Businesses may need car insurance if driving is necessary for business purposes. Companies with property should purchase property insurance. And anyone at risk for a cyber-attack needs to understand the importance of cyber insurance.

If a natural disaster comes through your area, insurance can help you pay your employees and get your company reestablished in the aftermath.

Step #2 – Develop a Disaster Plan

Your employees need a plan. If a disaster is impending, everyone needs to know how to respond to prevent needless injuries and worse. Have a plan for response while at work and a plan for showing up to work if an emergency warning has been issued.

Have a plan for responding to a fire, flood, wind storm, and any other type of emergency that could happen where you live.

Ask your employees to help you develop your plan. More minds thinking through a situation can lead to a better-planned response. When your employees participate in plan development, they feel valued, and it will lead to increased employee well-being.

Step #3 – Write Down Your Plan

Writing down your plan takes it to the next level. It’s something that each employee can have and access so they can build confidence in how to respond to an emergency.

Hold regular meetings to review your plan and do a run-through of your responses at least once a year. During times of panic, you’ll respond how you practiced. That’s why schools have fire drills.

Step #4 – Save an Emergency Fund

An emergency fund can help you recover more quickly following a loss. You will likely discover things you need that insurance won’t cover. Plus, an insurance settlement can take some time. So, having a cushion of funds to keep your business afloat can make the difference between keeping your business strong and losing it.

Small businesses may find it challenging to build a financial buffer, but when you make it a priority, you may surprise yourself with what you can do. One option is to save your tax refund if your business received one.

Developing an emergency plan means you have to think about the potential for unpleasant events. While it may not be a fun experience to plan, the effort you put into it will be well worth it if you ever encounter an emergency situation.

About Author

Melanie Musson, a published insurance expert, is the fourth generation in her family to work in the insurance industry. Over the past two decades, she has gained in-depth knowledge of state-specific insurance laws and how insurance fits into every person’s life, from budgets to coverage levels. She specializes in autonomous technology, real estate, home security, consumer analyses, investing, digital security, and business finance.


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