How Can Businesses Prepare for Disasters?

Each month, we'll ask local business owners and leaders a question of interest and concern to local businesses. This month's question is:

Residents were greatly impacted by problems with the power outages that followed Hurricane Irene and the October snowstorm, but some businesses suffered doubly: not only were they unable to open and conduct business, but inventory was damaged (especially for restaurants). Any further disruptions to service would almost certainly force some to close. Businesses can buy insurance to help reduce the impact, but is that the best thing to do?
Do you think there is enough support available for small businesses in such events? What other ways can businesses protect themselves from the problems caused by such external forces?

John Ramella, Mansuetos Seafood:

There is no support, that I know of, except insurance. Check your policy and make sure you are covered for the right things, you can litteraly lose your business if you have the wrong insurance.

Some things you just can't do anything about, such as "acts of God." Insurance to cover this type of loss can set a business back further then the actual damage. Our future steps will be to start putting some money aside in and emergency fund as well as not stocking so much inventory during those times of the year when we are suseptable to such hapenstance. You can not avoid some things in business, but if you keep good relationships with vendors and communicate to them your difficulties, most are understanding and extremley helpful in emergency situations. In our case we are not able to make full payments on invoices(as we always have)but, instead now send "a little" payment at a time during this difficult stretch to show good faith on our part. Our vendors have been very good to us and very patient and understanding about both storms and the impact it has had on us.

Bob Marino, Marino Marketing:

I work from the home, I finally bought a generator and it enabled me to get back up and running with phone lines and computer.... it was a big help.

Vic Sordillo, Chubb Insurance:

This first component of a plan to being able to survive a catastrophic event is a risk assessment analysis. A business must understand their specific vulnerability to any predictable adverse event. For example, a restaurant expecting, with a high probability of the event, that they may loose power should have an agreement with a competitor or supplier to temporarily take possession of perishable goods to avoid spoilage. If the restaurant anticipates that the event could occur on a regular basis, they may want to install a back-up power generator. Once the risk assessment analysis in completed, they need a business continuity plan to mitigate or eliminate the loss potential. A computer operation may need a UPS system and a plan to manage an orderly shut down of the system to reduce the loss of data or they may want to contract with a "hot site" to go back on line without a noticeable interruption of service to their clients.  All plans should be tested and updated on a regular basis. Insurance is necessary but it does not bring back customers.

Know a good question for local businesses? Or want to participate in our Roundtable? Send an email to john.patten@patch.com