Business Litigation Alert: "Hurricane Season is Here – Is Your Business Ready?"
The 2013 Hurricane Season officially began last weekend. Predictions for this year’s storm activity are high – 13 to 20 named storms, of which 7 to 11 could become hurricanes, including 3 to 6 major hurricanes.
Is your business ready? Here are some steps you can take now to protect your business:
- Create a business continuity plan. Identify your critical business functions and evaluate whether / how each would be lost in the case of direct or indirect damage. Outline what to do and who to call on to help keep your business running in the event of a weather emergency. Connect with vendors to ensure they have a backup plan in case of a storm, and if not, find an alternative.
- Backup your data and test the recovery process. Conduct test-runs to make sure your back-up systems work. Don’t wait until there is a major storm to see if your data back-up plans are appropriate.
- Talk to your insurance agent. The time to review your company’s insurance policies is now, not after you have been damaged by a storm. Check insurance coverage to make sure your company has the right kind of insurance and in sufficient amounts. Consider whether “time element” coverages such as business interruption, contingent business interruption, and service interruption make sense.
- Communicate with your employees. Review and practice with employees what they should do during and after a major storm. Include emergency preparedness information in company newsletters, intranet, and emails. Use an Alert Notification System to keep employees posted on status updates and next steps. Emphasize employee safety in all communications.
By addressing these matters now, you and your business will be better prepared if a major storm strikes in the future.