Is your business ready for wild weather?

FEMA Photo library-Liz Roll

Note: This post was originally published in 2012 and has been updated with current information.

The last two weeks Mother Nature has unleashed her fury on the southern U.S. and eastern Mexico with three hurricanes and a major earthquake. As of this posting, two more hurricanes have the potential to strike the Eastern seaboard. Millions have lost homes and businesses. Between hurricanes Harvey and Irma everyone seemed to know at least one person, if not more, directly affected by the storms. Our prayers continue to be uplifted.

When this particular post was written in 2012 the Mid Atlantic was preparing for another storm as we patiently watched the track of hurricane Sandy. While Sandy made more of an impact farther north, the Mid-Atlantic region had experienced some past wild weather. There were three blizzards in one winter, two back to back. In 2011, there were back to back tropical storms. In 2012, we experienced a derecho storm. A derecho type of storm and the name itself being new to the area. Going back to 2003 we all remember the massive flooding associated with Isabel. All of these weather events caused power outages, some for several days or a week plus. 

Getting back to business

In 2012, as now, you see businesses staying open as long as possible to service their communities. After the storm they open as quickly as possible to resume operations. Sometimes a business is lost. In addition to ensuring that their family and homes are safe, small business owners must also protect their businesses, which in many cases are their livelihoods.

We become so accustomed to having electricity we forget all that is electric dependent, e.g.-gas pumps, ATMs, cash registers and credit card machines to list a few. We also become complacent as to how dependent our businesses are to electricity.

Power outages are reported in number of customers without power, not business loss. So there is not one source to determine how small businesses suffer. There are few businesses that can operate without power. Depending on your product you may be able to conduct some business with cash transactions. In the current economic climate any business loss is crucial. Add to that the possibility of losing inventory due to damage or loss of refrigeration and small businesses can really be hurt.

Preparation for business restoration

No different than a home, business owners should prepare for storms and power outages. The logistics of preparing your business for a storm and the loss of power after the storm can be complicated. Having a written plan of action can make the task easier. Take the lessons learned from past outages and make a simple outline. The adage of “being prepared” is true and can significantly reduce either your loss or time your business is down.

Depending on your location and the type of storm you may need to prepare your facility for flooding. This may include boarding windows, sandbagging, moving inventory and equipment. Your business has many unique facets that have to be examined when developing your plan. Here are a few operational items that should be considered.

• Purchase generators or ensure generators are in place and operational.
• Be prepared for cash transactions.
• What type of telephone system do you use? Newer systems do not work without power or have limited hours battery backup.
• What type of security do you have? As with the telephone system, security systems often have only limited hours backup. 
• Backup computer business files. Sudden and/or prolonged power outages can result in data loss. When complete, store the files offsite. 
• Review insurance policies and coverage’s annually with your provider. Update as necessary.
• Make sure insurance and business documents are easy to locate and safe from harm.
• In the winter, prepare for safe ways to provide heat to your business.  

The biggest mistake business owners can make is not heeding warnings and being caught off guard. We can all learn from the recent storms and past winters heavy snows. Having a recovery plan of action to protect your business assets may be the some of the cheapest insurance available.