Businesses of all shapes and sizes face a number of risks, but disasters are among the biggest risks; things like fires, floods, earthquakes, and other natural disasters can wreak havoc on any business, but small businesses are at risk of suffering the biggest consequences. The American Red Cross reports that natural disasters can be so damaging to small business that more than 40 percent end up closing their doors forever when they are affected by one. That’s a pretty frightening statistic; what’s even scarier is the fact that more than 60 percent of small business owners say that they do not have a plan in place that they can use to recover from a disaster. That’s because small businesses have a lot fewer resources available to them to help them restore their operations. 

While the hope is that you’ll never experience one, there’s no way to tell when a hurricane, a tornado, a fire, or any other disaster will strike. As the saying goes, the best defense is a good offense; having a disaster relief plan in place can help you recover in the event that a disaster does occur.

How can you protect your small business from a disaster? Here are some tips that you can use to safeguard your operations. 

Assess Your Exposure

Make sure you take time to assess your exposure to disasters. For example, what type of natural disasters is your local are prone to and how will the affect your business? Take into consideration your business’ proximity to areas where wild fires tend to break out, flood plains, bodies of water, and even power plants. Knowing your proximity to potential hazards can help you determine your level of risk and take the necessary precautions to protect your small business – and your employees. 

Evaluate Your Commercial Insurance Policies

Commercial property insurance is an absolute must, as it protects the physical structure of your business and the contents within it from things like fire, acts of vandalism, and theft; however, don’t just assume that your commercial property insurance policy offers the coverage you need for natural disasters. These policies won’t safeguard you from floods or earthquakes, for example; for these types of disasters, you’ll need specific coverage. So if you’re located in an area that is prone to flooding, you’ll definitely want to make sure that you invest in a proper commercial insurance policy to protect your business – and your own pocket.

Establish an Emergency Communication Plan

If a disaster does strike, you’re going to want to have a way to communicate with your employees, your vendors, your customers – and everyone else you work with – to keep them abreast of the goings on during the recovery period. Set up systems that will send out alerts via email and cell phone systems. Compile a list of personal email addresses for your staff members, vendors, and customers so that you have more than one way to reach them. Set up a system that will send out real-time updates to the community regarding your recovery; doing so will allow you to keep them current with your recovery efforts and when you’ll be back up and running. 

Have a Financial Cushion

While you may have the proper insurance coverage, it might not cover everything; furthermore, it can take time to see payouts for what your policies do cover. When you’re in the midst of a disaster, you need immediate access to cash. Try to save up as much money as you possibly can; but, if you’re in a real bind, a loan from somewhere like the Personal Money Network can be a huge help.