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  • For Businesses

Prepare My Business for an Emergency

Businesses can do much to prepare for the impact of the many hazards they face in today’s world including natural hazards, human-caused hazards or technology related hazards.

  • Natural hazards could be a flood, hurricane, tornado, earthquake or a widespread serious illness such as the H1N1 flu virus pandemic.
  • Human-caused hazards include accidents, acts of violence by people and acts of terrorism.
  • Examples of technology-related hazards are the failure or malfunction of systems, equipment or software.

DHS/FEMA sponsors a resource called “Ready Business” to assist businesses in developing a preparedness program by providing tools to create a plan that addresses the impact of many hazards. The direction recommended is to adopt a standard for Disaster/Emergency Management and Business Continuity Programs called an “all hazards approach.”

Steps to Create a Business Preparedness Program

To develop an “all hazards approach,” DHS has adopted National Fire Protection Association 1600 (NFPA 1600) as the American National Standard for developing a preparedness program.

There are five steps toward creating a business preparedness program:

1. Program Management

  • Organize, develop and administer your preparedness program
  • Identify regulations that establish minimum requirements for your program

2. Planning

  • Gather information about hazards and assess risks
  • Conduct a business impact analysis (BIA)
  • Examine ways to prevent hazards and reduce risks

3. Implementation

Write a preparedness plan addressing:

  • Resource management
  • Emergency response
  • Crisis communications
  • Business continuity
  • Information technology
  • Employee assistance
  • Incident management

4. Testing and Exercises

  • Test and evaluate your plan
  • Define different types of exercises
  • Learn how to conduct exercises
  • Use exercise results to evaluate the effectiveness of the plan

5. Program Improvement

  • Identify when the preparedness program needs to be reviewed
  • Discover methods to evaluate the preparedness program
  • Utilize the review to make necessary changes and plan improvements
  • How Do I - For Businesses
  • Preparedness

Best Tips for Creating Your Business’s Disaster Plan

Table of contents.

disaster plan in a business

You never want to imagine the worst happening to your business – but what if it does? A natural disaster may seem unthinkable, but as a business owner, thinking about the impacts of one needs to be part of your job. Help secure your company’s future by creating business continuity and disaster recovery plans.

What are business continuity plans and disaster recovery plans?

While there are differences between a business continuity plan (BCP) and a disaster recovery plan (DRP), some companies merge them into one plan.

“A business continuity plan is a defined, documented strategy designed to help business owners and their employees prepare for any event that may disrupt business operations, including natural disasters , single-building fires or floods, supplier outages, and more,” said Mick Whittemore, vice president of IT at Paychex.

A DRP, sometimes referred to as a disaster recovery policy, describes how to resume business operations quickly and is typically applied to details-level planning of an organization’s IT infrastructure and applications. The DRP should allow your IT team to recover enough data and system functionality to operate the business again.

These plans apply to both physical disasters, such as weather events, and virtual ones, like cyberattacks. In either instance, your business needs to be equipped to minimize the consequences.

A professional employer organization (PEO) such as Paychex can help you create your BCP and DRP. Read our Paychex PEO review to learn more about the vendor and check out all of our recommendations for the best PEO service providers as you go about choosing a PEO for your company .

Do you need both a BCP and DRP?

To ensure your business can continue operating after a disaster, you need both a BCP and DRP. Your BCP and DRP work together to make sure all potential vulnerabilities are addressed so you can maintain continuity by keeping unaffected operations going while working on recovering to restore affected ones.

“With the proper planning, the loss can be a bit less devastating, and in some cases, you could even prevent certain damaging situations from happening,” said Jay Shelton, senior vice president of executive risk at Assurance. “A disaster restoration and business continuity plan can significantly reduce the effects of a loss.”

Why are disaster recovery plans important?

You can’t always avoid disasters, but you can prepare for them. Disaster recovery plans help recover what is lost, whether that is data from a cloud data center, physical property (e.g., office space in a hurricane) or something else.

Consider this scenario: A hurricane hits your region, flooding your data center. How will you get operations back up and running in a timely manner? What if you can’t? The longer your business is out of commission, the harder it will be for your company to survive. A thorough disaster recovery plan properly executed can mitigate the damage. Such a plan may not only save you money but also help ensure your company’s reputation emerges from the disaster unscathed.

How do you create a disaster recovery plan?

To create a disaster recovery plan, you first need to decide what approach or strategy will form the framework of your policy.

  • Data center disaster recovery: With this approach, your business’s data is stored onsite. Your DRP should specify what the critical assets are and ensure there are redundancies in place (e.g., generators) to protect your company’s data.
  • Cloud-based disaster recovery: Here, your company’s data is stored in an offsite location where it is not vulnerable to damage or loss.
  • Virtualization disaster recovery: Virtualization creates a virtual version of IT resources (e.g., your servers, applications and networks), which are stored with a host. Virtualization cuts the time in performing a full restoration of your system. In the event of a fire, for example, you wouldn’t need to reconstruct a server.
  • Disaster recovery as a service: With this method, providers can host and run a secondary hot site (a type of backup) for your data. In addition, they can rebuild and ship servers to your business.

Please note that due to the complexity of disaster planning, our advice is for small and midsize businesses only. If you work for a big company that has a lot of moving parts, we recommend contacting a disaster recovery specialist.

What’s included in a disaster recovery plan?

Once you’ve decided on your disaster recovery plan’s approach, begin tackling the specific components to build the plan. A good DRP should include the following elements.

A planning team: Establish a planning team of employees or volunteers who are responsible for the development of the plan.

A leadership execution team: Throughout your plan, specify who is responsible for executing the plan and assign a lead. In some cases, the entire company will be accountable, but to keep execution organized, always have a disaster recovery plan lead.

Goals and objectives: Identify goals and objectives for what your plan will accomplish. Establish answers to questions like, “Where do we relocate?” and “Whom should I partner with?” Your primary goal should be to have a solution for the issue.

Capabilities and hazards: Gather information about current capabilities and possible hazards and emergencies. Consider what the worst-case scenario would be. Also, consider something most businesses don’t think about – the recovery point objective, or RPO. RPO is the age of the files that need to be recovered from backup storage so your operations can continue as usual. The age of your files will affect your data backup strategy. Due to the complexity of this subject, consult an IT expert for assistance.

Action plans: Each type of possible disaster (such as fire, flood, earthquake or hacking) should have its own action plan. Each action plan should list the procedures to follow. In addition to an action plan, it’s essential to have a long-term recovery plan in place.

Written documentation: Include backup protocols and systems to ensure everyone on your team knows what needs to be done and can follow the outlined plan. Address the below questions so your plan is simple and easy to follow:

  • Who are the team members responsible?
  • What is the specific type of threat?
  • What is the likelihood of it happening?
  • What impact would it have on the business?
  • What are the recovery objectives?
  • What are the required response steps?
  • What recovery and repair might be required?
  • What follow-up is required?

Employee training: All staff members, from management to maintenance, should understand your company’s disaster recovery plan. Integrate plans into company operations and employee trainings.

Testing and re-evaluation: Your disaster recovery plan is not complete after you create the initial plan. Testing and re-evaluation are critical parts of ensuring your policy will be effective. See where there is room for improvement, then weigh different plans of action to ensure disasters are handled in the best way possible.

Task certain employees with planning and leading your DRP, with a commitment to regularly test and revise the plan so it remains up to date.

How and when should employees be trained for disaster recovery?

Employee knowledge is integral to creating a successful business continuity plan and disaster recovery plan.

“Employees need to be informed about their roles and responsibilities in support of any recovery effort,” said Whittemore. “They should be trained when the BCP is first developed and then refreshed every year as the document is updated.” 

Many companies use simulation exercises or drills to implement parts of the plan to ensure critical infrastructure is working. E-learning tools can be helpful as well, but the best practice is to simulate the plan at least once a year.

While existing employees benefit from training at the time the plan is created and during regular simulations, incoming employees need to be informed about the process too. New hires should be trained on the plan once they’re onboarded. You can even make it part of your onboarding checklist .

What happens if your disaster recovery plan goes wrong or isn’t followed?

If your disaster recovery efforts don’t go according to plan, your company could immediately lose money. It could keep losing money until the disaster is resolved – or your business is forced into bankruptcy. 

For example, let’s say you haven’t taken advantage of quick cybersecurity tips and fall victim to a cyberattack. This would be a digital and financial disaster: According to IBM , the average cost of a data breach in 2022 is $4.35 million. With a disaster recovery plan in place, you would quickly reactivate your IT systems and avoid or minimize losses. 

But without a disaster recovery plan – or with a team that doesn’t follow it or carry it out correctly – you could be hundreds of thousands, if not millions, of dollars in the hole. The longer you remain unable to provide your services, the more your customers will seek them elsewhere. That long-term revenue and customer loyalty loss can be hard to recoup.

Data breaches and property damage are among the biggest business insurance risks . To complement your BCP and DRP, seriously consider taking out business interruption and cyber policies. Learn more in our small business insurance guide .

Creating a DRP and BCP to keep your business stable

A disaster can happen at any time, especially when you’re not expecting it. When you create a disaster recovery plan and business recovery plan and train your team on them, you lessen the chances of disasters sidelining your business. It’s frustrating not to know when these disasters might be coming and how bad they’ll be. Preparing before there’s even a hint of a threat can help you keep the worst outcomes at bay. 

Max Freedman contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article. 

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Small Business Preparedness

To minimize the impact of disasters on employees, property, and operations, businesses must make the right preparations. These include: creating a disaster plan, identifying priorities, training employees on emergency preparedness, and reviewing the business’ insurance coverage. Here are resources to help prepare for disasters and organize your response.

Quick Guide: Small Business Preparedness

January 01, 2015

Top 10 Preparedness Tips

  • Organize a staff team to create your plan.
  • Gather critical documents and information needed for decision making.
  • Identify and prioritize the company’s most important operations and processes.
  • Identify hazards and potential disruptions to your operations.
  • Keep it simple: design a plan that is easy to understand and implement. .
  • Create a communications strategy and plan to use it post emergency. Maintain an up-to-date emergency contact list for employees, vendors, suppliers, and other key stakeholders.
  • Recruit and train employee volunteers that can effectively manage the response.
  • Back up and store vital records and data at an off-site location.
  • Take action to mitigate the potential impact of a disaster on equipment, buildings, facilities, inventory, and storage. Consider your insurance options and whether to purchase a generator.
  • Exercise, test, and update your plan at least annually.
Only 33% of small businesses have business interruption insurance. (National Association of Insurance Commissioners)
  • Top 20 Preparedness Tips for Businesses  (DRB Toolkit) – Covers what you need to do before, during and after with tips on how to protect everything from your employees to the company brand.
  • Are You Prepared? How to Make a Disaster Recovery Plan For Your Business  – A 10-step guide to creating a disaster recovery plan.
  • 7 Steps You Need to Take Before Disaster Strikes  (AmEx) – Provides simple, straight-forward steps derived from the response to Hurricane Sandy and other disasters.
  • Business Interruption Preparedness/Recovery – Five steps to ensuring business continuity during a disruption.
  • How Small Businesses Should Plan for Disasters – Case studies on disaster response from Hurricane Sandy.
“Small businesses are at particular risk as they often lack the resources to survive a catastrophic event. And when small businesses are unable to rebuild, the entire community continues to suffer. Jobs are lost, neighborhoods decline, and individuals and families endure further hardships.” ~United Way, Larimer County (CO) after 2013 floods

Preparedness Guides

  • 7 Steps to an Earthquake Resilient Business  – Focused on earthquake recovery, this booklet explains what businesses can do before, during, and after disaster.
  • Preparedness Planning for Your Business  (FEMA) – Website and tools for assessing, planning, responding, and improving future readiness.
  • American Red Cross Ready Rating Assessment  – A program that provides a 123-question assessment to help businesses identify gaps and strengths and where they should focus attention.
  • Disaster Recovery and Continuity Guide – Guide to prepare and assist businesses affected by a disaster.

Checklists—General

  • Emergency Preparedness Checklist for Small Businesses  (Red Cross) – 3-step preparedness checklist.
  • IOWA Business Emergency Preparedness Plan  – Checklist with examples of best practices for creating a preparedness plan.
  • Business Disaster Planning Checklist – Useful list to help business plan ahead before a disaster.  
  • Minimizing the Risks to Your Business Using Security Measures and Disaster Planning  – Guide to securing business property following a disaster.

Checklists—By Hazard

  • Prepare for a hurricane’s effect on your business, employees and community  (SBA/Agility) – Guide to preparing for a hurricane.
  • Tornado Preparedness Checklist  (SCORE) – Guide to preparing for a tornado.
  • Tornado Preparedness and Response  (OSHA) – Planning and employee training guide for tornado preparation.
  • Flood Preparedness Checklist  (SCORE) – Guide to preparing for a flood.
  • Earthquake Preparedness Checklist  (SCORE) – Guide to preparing for an earthquake.
  • Seven Steps to Earthquake Safety – Step-by-step guide to earthquake preparation.

Business Continuity Planning (BCP)

  • Planning for Business Continuity after a Disaster  (IRS) – Short video giving four key areas for businesses to focus on when planning.  
  • DRB Toolkit © (Disaster Resistant Business Toolkit) – Step-by-step, fully customizable planning tool guides to help all types of businesses build a disaster plan, train employees, run exercises, and prepare operations. Provides tools, templates, and videos for beginners and experienced planners alike. Use discount code: USChamber
  • Planning and Responding to Workplace Emergencies  (OSHA) – Factsheet of requirements and tips for emergency response and protecting employees.
  • Preparing Your Business for the Unthinkable  (Red Cross) – Short guide with helpful suggestions to get started.
  • 2011 Crisis Preparedness Study  – Slideshow for businesses about the importance of Business Continuity Planning.
  • Preparing for Disasters (IRS) – Short video about how to protect tax and banking information following a disaster.
  • Preparing for a Disaster (Taxpayers and Businesses) – Tips for safeguarding documents and tracking valuables after a disaster. Includes a Loss Workbook tool from the IRS.
  • Being Prepared: Is Your Business Ready for a Disaster? – Slideshow of information about disaster recovery; includes information on government assistance, statistics about business recovery, and assistance for small businesses.
71% of small businesses say they are “very dependent” on 1 or 2 key people, but only 22% have “Key Person Insurance” ~National Association of Insurance Commissioners (NAIC)

Insurance is not a tax; it is a risk management tool critical for all businesses. It can reduce the financial impact of accidents, fires, and other unplanned disruptions. Insurance protects businesses from events out of their control and improves chances for survival. Here are some tips to keep your business running smoothly:

  • Review your coverage and design an insurance program that fits your business and risks. Bring in an insurance professional to explain different types of available coverage. Keep in mind that some policies may not need to cover every aspect of the business but simply the most critical elements that you need to remain operational. Find the right balance.
  • When disaster strikes, file a claim as soon as possible. To do so, plan ahead for what items you will be required to provide so you do not miss an important step in the process. Take pre-disaster photos of your business and equipment. After an event occurs, document damage with photos or videos.

Review Your Coverage

  • What Types of Insurance Should a Small Business Consider?  – Discusses everything you need to know how to pick the right coverage for your business.
  • Types of Business Insurance  (SBA) – The 5 basic types of insurance that businesses need to consider.  
  • Insurance is Financial Risk Mitigation  (FEMA) - Information on National Flood Insurance Program (NFIP); includes resources such as a link to an insurance coverage review  form .
  • Earthquake Basics Insurance – Details insurance options available for businesses facing the threat of an earthquake.
  • How to Develop a Small Business Disaster Recovery Plan – Overview of helpful insurance plans for small businesses. 

Filing a Claim

  • Let Us Help Guide You Through Your Business Insurance Claims  – Checklist to assist with filing a claim.   
  • After A Loss: Filing Your Business Insurance Claim  – List of steps to take after filing an insurance claim.
  • Disaster Resource Guide for Small Businesses  – Step-by-step guide to filing a claim. (Ignore Missouri specific information) 
  • Important Insurance Lessons from Superstorm Sandy  – Helpful tips on working with insurance companies during the claims process. 

Communicating with Employees, Suppliers, and Customers

During disasters, communication is one of the most needed activities to inform employees and suppliers, answer customer questions, reduce rumors, and provide expectations to the public. It is also one of the first systems to break or experience challenges.

To plan for potential business interruptions and to create a crisis communication strategy as part of your larger Business Continuity Plan. Here are some tips:

  • Keep your Emergency Contact List updated with every possible mode to reach each person (phone: work, home, cell, significant other’s cell; email: work, personal, alternate; family contact; evacuation plan and contact; social media: Facebook, Twitter; etc.)
  • Consider an alert mechanism that can keep your employees, customers, vendors, suppliers, and stakeholders informed and regularly updated in multiple ways (e.g. email, text messages). Test regularly.
  • Use existing social media platforms to communicate online (e.g. Facebook, Twitter).
  • Have procedures to work with the media following a crisis.
  • Identify a spokesperson to be the voice of your company in talking with the media.
  • Developing messaging and talking points specific to their intended audience (e.g. employees, vendors, community members).
  • Communicate accurately and often with customers to keep them informed of any delays in delivery, alternatives, expectations, and any compensation.
  • Monitor outside communications to determine what is working well and areas to improve your communication strategy.
  • Update the communications strategy often. Train employees and provide new hires with the communications strategy.

Crisis Communication Planning

  • Is Your Company Prepared to Respond after a Disaster?  (SBA) - Tips to get your company’s crisis communications plan started.
  • Crisis Communications  – (SBA/Agility) Checklist for developing a crisis communications plan with recommendations for during and after an emergency.
  • Disaster Recovery: Developing the Perfect Communications Plan for Your Business  – Guide to completing the Crisis Communications checklist.
  • Crisis Communications Plan  (FEMA) – Background information about Crisis Communications Plans and their importance.
  • Developing an Emergency Communications Plan: A Template for Business Continuity Planners  –List of eight essential topics that a crisis communications plan must cover.
  • Crisis Communications and Disaster Response  – Tips on communicating with employees and stakeholders post-Disaster.                                       
  • 2011 Crisis Preparedness Study  - Helpful statistics about Crisis Preparedness; includes recent case studies.
  • Reputation Management  –Slideshow of the basics for pre-planning crisis communication and how to address events strategically.

Integrating Social Media into Your Communications Plan

  • 5 Tips for Integrating Social Media into Your Disaster Plans – Helpful tips for using social media following a disaster.
  • 8 Tips to Avoid Social Media Disaster – How to plan for and respond to potential damage to your company’s name and brand.
  • Social Media Disaster Prevention and Response Tips – Case studies of businesses using social media to preserve their name and brand following a disaster.

Employee Assistance

An Employee Assistance Program (EAP) can be useful in handling productivity decline following a disaster.  

  • Consider how your company can help employees and families access medical care, food, housing, and other essentials.
  • Plan to connect employees with resources.  Those hit hardest may not have working phones or the ability to call area resources to find new housing, child care, a kennel, a rental car, or other necessary services.
  • Plan for the possibility of employees requiring financial assistance through the form of emergency grants or an advance on future wages. 
  • How to Set-Up an Employee Assistance Program?  – Five steps to set up an EAP.
  • Employee Assistance & Support  (FEMA) – Steps on setting up an EAP and opening a family assistance center.
  • A Manager’s Handbook: Handling Traumatic Events  – Chapters six and seven specifically provide information for businesses looking to set up an Employee Assistance Program. Includes tips on minimizing employees’ stress.

Additional Resources

Depending on the type of hazards your business may face there are a variety of resources to help. These include FEMA, SBA, business continuity publications, local fire departments, Chambers of Commerce, Economic Development organizations, professional organizations and many more. Most  have a strong online presence with tools available via the internet.

  • FEMA.gov  – Presents many kinds of preparedness information and materials.
  • Ready Business (FEMA) - Helps companies develop a five-step preparedness program that addresses the impact of many hazards.
  • Protect your Property or Business from Disaster (FEMA) – A downloadable list of publications detailing how to minimize property losses caused by various types of natural disasters.
  • DisasterAssistance.gov  – If you have personal (non-business) losses, register with FEMA here or call FEMA: (800) 621-3362 or TTY (800) 462-7585.
  • Disaster Declarations  are made by states to keep track of what is happening and provide immediate resources.
  • If there is a federal emergency declared, click here  to find your nearest Disaster Recovery Center.
  • SBA: Disaster Loans  Links to articles, factsheets, and forms related to the Disaster Loans program; includes mail-in and online applications.  
  • Emergency Preparedness (SBA) – Articles on planning and resources.
  • IRS Videos on Disaster Subjects  – Informative videos to help businesses affected by a major disaster.

Recommended

  • Disasters Strengthening the Backbone of Healthcare: Navigating Supply Chain Challenges in the New Era By Rob Glenn
  • Disasters The Business Community Convenes to Mobilize Support for Israel Following Terrorist Attacks By Sydney Lewis
  • Disasters Earthquake in Afghanistan
  • Disasters American Express Commits $12.75M in Grants to Aid Small Businesses in Climate Resilience and Disaster Recovery
  • Disasters Responding to Hurricane Otis

View this online

From COVID-19 to Hurricane Season: Disaster Preparedness for Small Business

Table of contents.

disaster plan in a business

Running a small business is hard enough without having to rebuild after a natural disaster. Many businesses all over the world make the mistake of not properly preparing for disasters and are left to suffer the costly consequences. However, small business disaster preparedness planning is easier than you might think. We scoured the internet and interviewed risk management experts to bring you the best tips and resources, so you can finally check “disaster plan” off your to-do list.

What does good disaster preparedness look like?

What does good disaster preparedness mean? We asked Frank Russo, founder of risk management company  Procor Solutions + Consulting . He told us an impressive story.

There’s a large consumer goods retailer, he said, that calls a standing meeting after  every  major natural disaster, even ones that had no effect on their business. They talk about what they would have done if the disaster had happened at one of their locations. Russo said that the company builds these brainstorm sessions into a regular “catastrophe gaming process” where employees act out disaster situations. The real-life stress tests identify weak points – for example, a door that can’t be locked because the facilities person is on vacation.

In 2008, Hurricane Ike caused a major loss for this company in Houston, but it recovered quickly thanks to all its preparation – so quickly, in fact, that Russo says it actually saw higher-than-normal sales after the hurricane. Why? Because it was one of the only businesses open in the area.

In December 2019, the novel coronavirus (COVID-19) was detected in Wuhan, China, and quickly spread all over the world. As of March 11, 2020, the World Health Organization recognized the spread of the infectious disease as a pandemic. Businesses all over the world have been impacted by the coronavirus pandemic – if you are a small business owner, visit the CDC’s website for interim guidance for businesses and employers.

Natural disasters can end small businesses.

Studies show that more than 40% of small businesses close permanently after a disaster . Among the businesses that reopen, another 25% fail within a year.

A good disaster plan means fewer days out of business, better communication with customers, and a better settlement from your insurance company. Add it all up and your plan could be the reason your small business beats the odds.

Disaster Plan

Look, we know you have a long to-do list. But trustworthy government resources developed over the past few years have made putting together a disaster plan much easier than you’d think. As Russo says, “even a basic plan is better than no plan.”

Step 1: Identify risk.

Which of these large-scale disasters is a threat to your business?

  • Winter weather
  • Earthquakes

If you have a single location, you already know the answer. But what about any additional areas that are critical to the success of your business? Think about where computer servers are located, where goods are stored – even areas where your employees commute from or work remotely. This  risk assessment table from the Federal Emergency Management Agency (FEMA) will help.

If you have business insurance, make sure you’re covered for disasters that could hurt you. Your agent will be able to tell you what coverage you need.

One thing you can do in the next 15 minutes to make your business more prepared is review one of the U.S. Small Business Administration (SBA) and Agility Recovery checklists below.

If you’re ready to start your comprehensive plan, the FEMA Ready toolkits at the end of this article are the place to start.

Step 2: Develop a plan.

The key to developing any good plan is to put a single person in charge of it. This is your disaster plan coordinator. They decide how to develop the plan – but you, as the business owner or manager, should be clear about what they need to include. Here are some questions to think about when you assign this important task.

Does the plan coordinator need a supporting committee?

If your business is large enough that it has separate departments, the answer is probably yes. Each internal department will have its own unique assets, systems and requirements. You don’t want an outsider guessing what those might be.

Next, think about the entire scope of your operations. Do you ship hundreds of packages a day? Then you want to have someone at your shipping company as part of the supporting committee. Any vendor, supplier or government agency that you use on a day-to-day basis should be represented on your committee. They can explain their own disaster preparedness planning and how that will affect your post-disaster operations.

What are the minimum elements your plan requires?

The goal of a disaster plan is to help ensure the well-being of your employees, the stability of your location’s environment and, last but certainly not least, your ability to keep the business running. That may mean you need a 100-page guide, or you may just need a simple series of reference sheets. Either way, your planning coordinator needs to know the scope of your plan before they can properly develop it.

disaster plan in a business

Your plan must address these three goals, at the very least. These are the minimum viable elements of a disaster plan:

  • An evacuation policy, including maps and routes
  • Whom employees should contact, inside and outside the company, for additional information about what to do
  • Who is required to stay onsite to perform essential functions or shut down important items
  • Who is responsible for rescue and medical duties
  • Employee emergency contact information, plus information about unique medical needs
  • Special instructions regarding hazardous materials and equipment, if necessary

What special circumstances does your plan need to address?

Direct your plan coordinator to address any special circumstances related to your employees, your environment or your business operations. Here are some examples:

  • An employee with mobility issues
  • An irreplaceable piece of equipment that requires maximum protection
  • A specific OSHA requirement for storage of a certain chemical

If you have business insurance, this is an excellent time in the prep process to involve your insurance agent. You know that monthly premium you pay? Part of what you’re paying for is access to the risk management experts at your insurer. They have seen the aftermath of disasters from coast to coast and can help you decide what to prioritize in your disaster planning.

Here are some other resources to help you build out your plan requirements.

  • CDC:  Coronavirus (COVID-19)
  • WHO:  Rolling updates on coronavirus disease (COVID-19)
  • Red Cross:  Ready Rating
  • S. Chamber of Commerce:  Small Business Disaster Preparation Quick Guide
  • FEMA Ready:  Business Impact Analysis
  • FEMA Ready:  Disaster Plan Performance Objectives
  • IRS:  Preparing for a Disaster

Step 3: Implement and train.

Your disaster plan coordinator, their supporting committee, and you, as the business owner or manager, should approve the final plan – but your work doesn’t stop there.

A disaster plan isn’t something you dust off when the red warning stripe comes across your TV screen. You’ll have action items as soon as your plan is complete. The idea is to identify things you can do now so you won’t have to do them in the days or hours before a natural disaster.

Here are a few examples.

Evacuation routes and wardens

In case of an evacuation, employees need to know where to go. Supply evacuation maps and post them in visible areas. Designate one or more individuals to make sure everyone gets out of the building safely – these folks are called evacuation wardens. The Occupational Safety and Health Administration (OSHA)  recommends you designate one warden for every 20 employees .

Disaster communications materials

Approve emergency communications for employees, customers, suppliers and other stakeholders. Write these now, with fill-in-the-blanks to cover disaster scenarios. Make sure people who need access have it both at work and at home. Don’t be like the state governor  who couldn’t tweet because he forgot his password .

Employee go bag

“In the event of a weather emergency, employee safety needs to be the No. 1 priority,” said Peter Duncanson, disaster preparedness and recovery expert at  ServiceMaster Restore . “Having a preparedness kit on hand, stocked with nonperishable food, clean water, first-aid supplies, and emergency tools like a hand-crank radio and backup batteries will all serve as valuable resources, especially if you have to wait out the storm for an extended period of time.”

When you plan the items to include in an employee go bag, consider how far employees travel to your work location and that roads may be rendered impassable. This  Red Cross quiz can help you decide what to include.

Every employee in your organization has a role to play during an emergency – even if it’s just getting themselves out of the building safely. Your plan should identify which employees are responsible for which roles.

Businesses of all sizes should have a person or team responsible for business continuity and crisis communications. In a small company, this will be you, the owner.

  • The  business continuity team prepares the business to restart once it’s safe to do so. This team also works with the insurance company to recoup losses caused by the disaster. The sooner you start making money again, and the more you get back from your insurance company, the more likely your business is to survive.
  • The  crisis communications team is responsible for developing disaster communications and delivering those messages.

Here’s a sample training scheme:

disaster plan in a business

Step 4: Be a preparedness leader in your community.

In a natural disaster, you may be at the mercy of your least-prepared neighbor. The unsecured restaurant patio umbrella that comes flying through your window or the hazardous materials that floodwaters carry into your parking lot might not be a threat if you were in charge of them, but you aren’t. And the longer your community takes to get back on its feet, the longer you’re likely to wait for business to ramp up again.

Communities often come together in the aftermath of a disaster, but it would be even better if they did so before the disaster happened.

Preparedness is good business.

Celebrating your disaster preparedness plan encourages other business owners – and customers – to make their own. It’s not only good for the community; it could be good for your business too. Promoting your disaster preparedness efforts helps in these areas:

  • Hiring and retention. By showing prospective employees – and reminding current ones – that you take employee safety seriously, you encourage them to join and remain with your company.
  • New business acquisition. Talking about disaster preparedness is a way to connect with potential customers and referrers that doesn’t require a sales pitch.
  • Social media growth. Feel-good stories about your steps to keep the community safe can generate positive social media attention. Don’t be shy – you put in the work, and you deserve those likes and shares!

Ready’s  Business Emergency Preparedness Social Media Toolkit  has sample messaging and graphics to work from. They’re a little dry, so challenge your marketing team to do better. They should relish the opportunity to talk about something other than your products.

disaster plan in a business

Prepare now so you can improvise later.

Bennett’s Market & Deli is a neighborhood grocery in Atlanta’s Grant Park. In September 2017, Victoria Bennett and Claire Pearson had owned the store for five years without experiencing a single power outage. But as Hurricane Irma approached, they put their disaster plan into action.

They bought a generator and massive amounts of ice, and collected coolers from folks in the neighborhood. They moved all of their backroom stock off of the floor to protect it from flooding. And they sent staff home, deciding to run the store themselves rather than risk employees’ safety.

Then the power went out, and it was time to get creative. With no way to run their credit card processors and cash registers, and no light in the store, Bennett and Pearson were still able to sell beer, wine, bread, and snacks using a cash bag and manual receipts.

“I think the neighborhood really appreciated that we were open,” Pearson said.

You never know how bad a disaster is going to be, and you can’t control it. Maybe flooding would have forced Pearson and Bennett to evacuate. Maybe the power would’ve stayed on. But they were prepared, which let them pivot as the situation required. In the end, they formed a stronger bond with their customers.

An expert’s take: What you should do right now

Frank Russo, the risk management expert who shared the story about the company in Houston, advises Fortune 100 corporations about disaster planning. We asked him, “What do you tell friends who own small businesses when they ask what they should do?”

“At a minimum, have an inventory of what your assets are, and make sure it’s up to date,” he said. That’s something you could knock off in less than an hour.

Once you’ve done that, consider following the steps above to create an actionable plan for your business.

“Have an updated planning review session once per year,” Russo said. “Ideally, every quarter.”

disaster plan in a business

The best action you can take, says Russo, is to weave disaster preparedness into the fabric of your business like the company in Houston did.

The true indicator of your disaster plan’s strength will be your business not only surviving the disaster but thriving during the recovery.

COVID-19 information and resources

As ever more information comes out about the coronavirus pandemic, it can be difficult for small business owners to know what to do to prevent the spread of this infectious disease. The Centers for Disease Control and Prevention (CDC) frequently updates its guidance for businesses and employers.

  • Actively encourage sick employees to stay home.
  • Place posters that outline coughing and sneezing etiquette and proper hand hygiene, and encourage employees to stay home when they’re sick.
  • Implement flexible working arrangements and supportive sick leave policies. Certain employees may be legally guaranteed sick leave, covered by the Family and Medical Leave Act and/or the Families First Coronavirus Response Act .
  • Incorporate social distancing policies and barriers or partitions in your workplace.
  • Educate employees on health and safety guidelines, including how to properly use personal protective equipment (commonly known as PPE).
  • Instruct employees to wear masks at work (unless they have a condition that prevents them from wearing one) and clean their hands often with an alcohol-based hand sanitizer.
  • Conduct daily in-person or virtual health checks (e.g., temperature and symptom screenings).
  • Routinely clean all frequently touched surfaces in the workplace.
  • Encourage employees to notify their supervisor if they have a sick family member.
  • If an employee is confirmed to have COVID-19, inform your team about possible exposure. However, you must keep the employee’s identity anonymous, in compliance with privacy protections granted by the American with Disabilities Act (ADA).
  • Encourage eligible employees to get the coronavirus vaccine in accordance with the CDC’s vaccine rollout recommendations. Individual employee vaccination information must remain confidential, per the ADA.
  • Check the  CDC’s travelers’ health notices for the latest guidance and recommendations.
  • Conduct a thorough hazard assessment to determine weak points in your health and safety protocol where employees may be exposed to the virus.

SBA and Agility Recovery disaster checklists

The SBA and Agility Recovery provide comprehensive checklists of things you should do in the days before a disaster is likely to strike. Review the ones that are applicable to your business – you want to make sure you can do all of this if necessary. All checklists are printable PDFs, although some may need to be downloaded with a business email.

  • Flood Preparedness
  • Winter Weather Preparedness
  • Influenza Preparedness
  • Bomb Threat Preparedness
  • Earthquake Preparedness

FEMA Ready Business Toolkits

These 40- to 65-page documents are a good place to start. They are generic and broad, because they are meant to work for many different types of businesses. But they do provide a solid framework focused on six factors: staff, surroundings, space, systems, structure and service.

  • Hurricane Toolkit [ In English /  En Español ]
  • Inland Flooding Toolkit [ In English /  En Español ]
  • Power Outage Toolkit [ In English /  En Español ]
  • Severe Wind/Tornado Toolkit [ In English /  En Español ]
  • QuakeSmart Toolkit [ In English /  En Español ]  

Skye Schooley and business.com editorial staff contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.

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A Comprehensive Guide to Creating a Disaster Recovery Plan: The Ultimate Roadmap

“A stitch in time saves nine,” they say. In the business world, having a disaster recovery plan is that critical stitch that can save you from the detrimental effects of unforeseen catastrophes. In this comprehensive guide to creating a disaster recovery plan, we’ll walk you through the process of preparing for the unexpected and ensure that your business can weather any storm that comes its way.

Understanding the Importance of a Disaster Recovery Plan

In today’s fast-paced and interconnected world, businesses face a myriad of potential disasters that could disrupt operations or even bring them to a grinding halt. The list goes on, from natural disasters like floods and earthquakes to cyberattacks and equipment failures. A comprehensive guide to creating a disaster recovery plan can help you:

  • Minimize downtime and loss of revenue
  • Protect your business’s reputation and customer trust
  • Ensure the safety and well-being of employees
  • Reduce legal and regulatory risks
  • Facilitate a faster and more efficient recovery process

Evaluating Potential Disasters and Business Impact

Before diving into the details of creating a disaster recovery plan, it’s essential to identify the types of disasters your business might face and their potential impacts on your operations. Consider the following steps:

  • List the possible disasters : Natural disasters, human-induced disasters (e.g., arson, terrorism), and technological disasters (e.g., hardware failure, cyberattacks).
  • Assess the likelihood of each disaster : Rate the probability of each disaster on a scale of 1 to 5, with 1 being the least likely and 5 being the most likely.
  • Evaluate the potential impact : For each disaster, determine the potential impact on your business, including financial loss, reputational damage, and operational disruption.

Defining Recovery Objectives

Once you’ve evaluated potential disasters, it’s time to establish recovery objectives . Recovery objectives should be clear, measurable, and attainable, and they should address the following two aspects:

  • Recovery Time Objective (RTO) : The maximum acceptable amount of time it should take to restore critical business functions after a disaster.
  • Recovery Point Objective (RPO) : The maximum acceptable amount of data loss your business can tolerate.

By defining your RTO and RPO, you’ll better understand the resources and processes required to create a disaster recovery plan that meets your business’s unique needs.

Developing the Disaster Recovery Team

A successful disaster recovery plan hinges on having a dedicated and well-prepared team. Here’s how to assemble your dream team:

  • Identify key personnel : Include representatives from various departments, such as IT, HR, finance, and operations.
  • Assign roles and responsibilities : Clearly outline each team member’s responsibilities during a disaster and the recovery process.
  • Provide ongoing training and support : Ensure your team has the knowledge and skills to execute the disaster recovery plan effectively.

Crafting Your Disaster Recovery Plan

With the groundwork laid, it’s time to put pen to paper and craft your comprehensive disaster recovery plan. Here are the key components to include:

  • Executive Summary : Briefly outline the purpose and scope of the disaster recovery plan.
  • Disaster Scenarios : Detail the types of disasters considered in the plan and the potential impact on your business.
  • Recovery Objectives : Clearly state your RTO and RPO for each critical business function.
  • Disaster Recovery Team : List the team members, their roles, and contact information.
  • Communication Plan : Outline how the information will be disseminated during a disaster, including communication channels, key messages, and target audiences.
  • Recovery Procedures : Detail the step-by-step processes for restoring critical business functions and systems.
  • Backup and Recovery Strategies : Describe the data backup and recovery methods, including offsite storage and cloud-based solutions.
  • Emergency Response Procedures : Outline the steps to be taken to ensure the safety and well-being of employees and customers during a disaster.
  • Testing and Maintenance : Establish a schedule for testing and updating the disaster recovery plan.

Regularly Reviewing and Updating Your Plan

A comprehensive guide to creating a disaster recovery plan wouldn’t be complete without emphasizing the importance of regular reviews and updates. So here are some tips to keep your plan in tip-top shape:

  • Schedule periodic reviews : Aim to review your plan at least once a year or after significant changes in your business or technology environment.
  • Conduct disaster recovery drills : Test your plan’s effectiveness by simulating disaster scenarios and evaluating your team’s response.
  • Update the plan as needed : Keep your plan current by updating it with new information, such as changes in personnel, technology, or business processes.

Disaster Recovery as a Service (DRaaS)

In recent years, Disaster Recovery as a Service (DRaaS) has emerged as a popular solution for businesses seeking to enhance their disaster recovery strategy. DRaaS is a cloud-based service that enables organizations to quickly recover their critical systems and data during a disaster. This section will delve into the benefits and considerations of using DRaaS as part of your comprehensive guide to creating a disaster recovery plan.

Benefits of DRaaS

  • Cost-Effectiveness : Implementing DRaaS can be more cost-effective than building and maintaining a dedicated disaster recovery site. You only pay for the resources you use, and there’s no need to invest in expensive hardware or infrastructure.
  • Scalability : DRaaS offers on-demand scalability, allowing you to easily increase or decrease your disaster recovery resources based on your business’s needs.
  • Faster Recovery Times : With DRaaS , you can often achieve quicker recovery times compared to traditional disaster recovery methods, thanks to automated processes and cutting-edge technology.
  • Expert Support : DRaaS providers typically offer 24/7 support and access to disaster recovery experts who can assist your team in executing your recovery plan.
  • Simplified Management : DRaaS solutions often come with user-friendly interfaces and management tools, making monitoring and managing your disaster recovery processes easier for your team.
  • Managed Services : Many DRaaS providers offer managed services, which means they take care of the day-to-day management and maintenance of your disaster recovery environment. This allows your IT team to focus on other critical tasks and ensures that your disaster recovery infrastructure is always up-to-date and ready for action.

Considerations When Choosing a DRaaS Provider

While DRaaS offers many benefits, it’s essential to carefully evaluate potential providers to ensure they align with your business’s unique needs and requirements. Here are some factors to consider:

  • Compatibility : Ensure the DRaaS provider’s solution is compatible with your IT infrastructure and applications.
  • Security and Compliance : Assess the provider’s security measures and certifications, and ensure they meet your industry’s regulatory requirements.
  • Customization : Look for a DRaaS provider that offers customizable solutions tailored to your business’s specific recovery objectives and needs.
  • Service Level Agreements (SLAs) : Review the provider’s SLAs to ensure they meet your RTO and RPO requirements and offer appropriate support and response times.
  • Cost : Compare the pricing of different DRaaS providers, considering factors such as storage, bandwidth, and additional services.
  • Managed Services : Evaluate the DRaaS provider’s managed services offering. Determine whether their level of support and expertise aligns with your business’s needs and whether outsourcing the management of your disaster recovery environment is a good fit for your organization.

By integrating DRaaS into your comprehensive guide to creating a disaster recovery plan, you can further safeguard your business against potential disasters and ensure a swift and effective recovery process.

Q : What is the difference between a disaster recovery plan and a business continuity plan?

A : A disaster recovery plan focuses on restoring critical business functions and systems following a disaster, while a business continuity plan addresses maintaining ongoing operations during and after a disaster.

Q : How often should I test my disaster recovery plan?

A : It’s recommended to test your plan at least once a year or after significant changes in your business or technology environment.

Q : Can I create a disaster recovery plan for my small business?

A : Absolutely! A comprehensive guide to creating a disaster recovery plan applies to businesses of all sizes. The key is to tailor the plan to your business’s unique needs and resources.

Q : What is Disaster Recovery as a Service (DRaaS)?

A : DRaaS is a cloud-based service that enables organizations to quickly recover their critical systems and data during a disaster. It provides numerous benefits, such as cost-effectiveness, scalability, faster recovery times, expert support, simplified management, and managed services.

A comprehensive disaster recovery plan is essential for businesses of all sizes and industries. By understanding the importance of such a plan, evaluating potential disasters and their impacts, defining recovery objectives, assembling a dedicated disaster recovery team, and crafting a thorough plan, you’ll be well on your way to protecting your business from the unexpected. Remember to review and update your plan regularly to ensure it remains effective and relevant. So, let’s get planning and ensure that your business is prepared to bounce back stronger than ever!

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The road to recovery after a disaster doesn’t have to be painful. Learn the six steps you need to take to build an effective recovery plan for your business.

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It’s not always possible to avoid the business fallout of a disaster like a pandemic, earthquake, or cybersecurity breach. But you can build a recovery plan to get your business up and running ASAP. Here are six steps you can take to get started.

Review your insurance coverage

Having the right business insurance can be crucial to surviving a disaster. You should regularly review your policies to ensure there are no gaps in your coverage.

For instance, if you live in an area that regularly experiences earthquakes, you want to ensure your policy will protect your business against these risks. You also want to ensure that your insurance will cover the disruption to your company and pay for damages.

[Read more: How to Choose Cyber Insurance ]

Audit your business resources

Next, you want to audit all critical business resources , including:

  • Equipment and other assets.
  • Perishable resources or products.
  • Staff members.
  • Property or real estate.

Once your audit is complete, you’ll know what your business stands to lose if it’s exposed to different types of emergencies. For instance, your business could sustain a lot of physical damage during a flood.

But your business may suffer economic damage during a cybersecurity hack. Auditing your business resources will help you determine which areas of your business to focus on.

Have a plan to backup your data

You must have a reliable data backup plan before disaster strikes. Over 50% of businesses aren’t prepared for a significant data loss, and 60% of those companies end up going out of business within six months.

It’s best to have multiple data backup plans in place. For instance, you could buy and use an external hard drive to back up your company’s data. And you should also backup your data in the cloud so that you can access it from anywhere.

[Read more: What Is the 3-2-1 Backup Rule? ]

Over 50% of businesses aren’t prepared for a significant data loss, and 60% of those companies end up going out of business within six months.

Make a list of key employees

The next step is determining which employees are critical to your business functions. For instance, your IT team would be critical in keeping your electronic processes functioning properly in an emergency, whereas sales reps may not be as necessary.

When an emergency strikes, you should immediately reach out to the employees and internal partners that can help keep your business running. No one can fully recover from a disaster on their own, so utilizing the right people will make your recovery efforts much smoother.

Communicate with your customers

No matter what kind of disaster you encounter, it’s key to have a plan for communicating with your customers. For instance, if your company was the victim of a security breach, you should let your customers know what happened and what steps you’re taking to mitigate the damage.

Make sure your customers know what’s happening and how to get in touch with you. It’s also a good idea to pick one employee to monitor your social media networks and answer questions.

[Read more: 5 Crisis Communication Best Practices Every Small Business Should Know ]

Apply for the Small Business Readiness for Resiliency Program

The U.S. Chamber of Commerce Foundation partnered with FedEx to create the Small Business Readiness for Resiliency (R2R) Program . The R2R program encourages businesses to prepare for natural disasters before they occur and awards grants to businesses in qualifying areas.

You’ll start by downloading FedEx’s Emergency Preparedness Checklist for Small Businesses. This checklist will help you create an Emergency Action Plan for your business.

From there, you’ll apply online and provide more details about your business. If you apply before a disaster strikes in your area, you may be selected to receive a grant to help your business recover.

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Small Business Disaster Planning & Preparation: A Beginner’s Guide

By OnDeck Team 5 Minute Read

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Small business owners can control what they sell, whom they hire, and how they do business. Having the power to make decisions is one of the reasons many business owners like running the show, rather than working for someone else. All that still doesn’t give owners power over outside events. Natural disasters, pandemics, financial crises, and unforeseen circumstances—from the death of a partner to the collapse of a major client—do happen. Preparing for the unforeseeable may be harder than setting aside cash for more predictable setbacks, but small business owners should still make a point of creating a plan of action for when disaster strikes. Keep reading to learn more about how to create a small business disaster plan, and how to put it into practice after disaster strikes. 

small business disaster recovery plan

Why do I need a small business disaster plan? 

Hope is a deterrent for planning for the worst. Small business owners are often optimistic; by definition, that means they may not entertain the possibility of bad outcomes. These sunny expectations can help with building a business, overcoming daily problems, and fostering a can-do attitude. But the same feeling can be disastrous if it means that forecasts are not accounting for potential breakdowns along the way.

And when you’re optimistic and strapped for time, you may put off your preparations for unforeseen circumstances. Many owners often neglect small business disaster preparedness because they’re busy focused on growing their organization. But they do so to their detriment.

This is where a small business disaster recovery plan can be helpful. While putting one together can take some effort, it will save you a lot of time down the road if disaster strikes. Your emergency plan will outline the steps your small business needs to take in the event of an unforeseen circumstance to keep things running as smoothly as possible. 

How do I make a small business disaster recovery plan?

You can make a plan even without knowing the exact nature of the disaster that may befall you. Consider the basic line-up—natural disasters, the death or serious illness of a partner, or a financial crisis—and set aside some time to mitigate the main negative effects of each.

First, look into getting the right insurance package. If you’re in a low-lying area, you’ll want to sign up for flood insurance; if your region suffers extreme winter, coverage for hail, snow, and freezing temperatures is what you’ll need. Business interruption insurance is an add-on that can compensate you for lost income if physical damage prevents you from continuing business as normal. For more information on some of the different types of business insurance, check out: “ Risks Small Businesses Face and How to Avoid Them .”

Then, set up a plan for communicating with employees and customers in the case of a disaster. You might even draft a sample fill-in-the-blank email that will help you disseminate important information so you don’t have to compose notes in a panic. As a best practice, you should have a customer and employee email contact list ready to go so you can communicate with both groups as needed. 

Next, make sure you are regularly backing up all important data and keep copies of files outside your physical office. Update your backups quarterly, if not more. Depending on what type of business you run, you may want to have a remote work plan in place for employees to ensure that work can switch to remote if needed. Check out this guide from Harvard Business Review on how to get an emergency remote work plan in place. 

Finally, if you have a business partner, find a time to sit down a discuss a succession plan, in the case of an emergency. Make sure you both know how to access key business services and accounts. 

Once you’ve put your small business emergency plan in writing, drafted some emails, and signed up for insurance, you can file your preparations away, so that sad possibilities don’t derail your daily work or sunny demeanor.

How to put a small business emergency plan into practice 

When an unexpected episode then occurs and is big enough to take a toll on the markets or our industry, we are almost always unprepared. By taking the steps above, you’ll have a better chance at resiliency. After a disaster happens, follow the plans you set up. Employees will look to a strong leader in this time, so you’ll want to put on a brave face and communicate clearly, even if you’re anxious about the damage.

As you rebuild, financing may help you get back on your feet. The Small Business Administration (SBA), for example, has an Economic Injury Disaster Loan program specifically intended to help small businesses affected by disasters. SBA disaster loans are available to businesses with less than 500 employees who are located in a state that is experiencing a declared disaster. A declared disaster means your state has declared to be in a state of emergency. This designation is commonly used for states experiencing flooding, hurricanes, tornadoes, or other adverse weather events.

Loans of up to $2 million are available to businesses, with terms of up to 30 years. The amount your business is eligible for depends upon a variety of factors, including loss in revenue, payroll costs, and rent payments. Learn more about SBA disaster loans in our guide.

Depending on your specific situation, the SBA may have other financing programs available for your small business. For example, to assist small businesses impacted by COVID-19, the SBA offers Paycheck Protection Program loans. Check out our guide to learn more about Paycheck Protection Program loans .

Whenever a situation is out of your control, it’s tempting to sit back—or even hide—and wait for all the trouble to disappear. But as a business owner, your company will have a better shot at surviving and thriving if you accelerate through the curves, like a race car driver.

Unfortunate events will probably transpire during your tenure as an owner, but they only develop into really bad outcomes if you allow them. Instead of wallowing in an unfortunate status quo, gather your wits and see how to make the best of a situation. Consider offering new products or tweaking your service to respond to a changing reality.

For example, if you’re planning to reopen your business post-coronavirus shutdowns, you may need to adjust your business hours, staffing, product offering, or the layout of your business location. Check out our guide to reopening your small business for more information.

You may not know what type of disaster will strike, but still, it pays to be prepared for what you cannot predict by making a plan. Fortunately, once the plan is in place, you can simply go back to being optimistic.

OnDeck is here to support small businesses – check out our  COVID-19 Resource Hub  for more helpful information for small businesses impacted by COVID-19.

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Author OnDeck Team

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Resilience in Crisis: Building a Disaster Recovery Plan for Your Small Business

Colin Hanks

  • What is a Disaster Recovery Plan?
  • Assessing and Understanding Risks
  • Roles and Responsibilities
  • Training the Team
  • Establishing Recovery Objectives
  • Documenting the Plan
  • Integrating Business Continuity
  • Infrastructure and Data Protection
  • Communication Strategies During Disasters
  • Testing and Updating the Plan
  • Budgeting for Disaster Recovery
  • How Can Veeam Help?
  • Related Resources:

In a time when threats range from natural disasters to cyberattacks, it’s critical for small businesses to prepare for the unexpected. Developing a comprehensive Disaster Recovery plan is not just a safety measure; it’s a vital part of ensuring your business’s resilience and stability. In this guide, we will explore the essential steps and measures a small business must take to not only anticipate but also navigate through such crises.

A disaster recovery plan for a small business is a tailored strategy and set of procedures designed to help you respond to and recover from various disasters or disruptions effectively. These plans help protect your company’s operations, safeguard important data, ensure business stability, and can have a positive impact on your bottom line. While the fundamental principles of a disaster recovery plan apply to businesses of all sizes, the specific elements of a plan for a small business may differ due to limited resources, budget constraints, and a smaller scale of operations. Let’s explore.

According to the Federal Emergency Management Agency (FEMA), 40% of small businesses never reopen after a disaster and another 25% fail within one year. To effectively manage these risks, small businesses must first conduct a comprehensive assessment of potential threats. This involves:

Identifying Potential Disasters As previously stated, the spectrum of threats encompasses a wide range, spanning from natural disasters such as earthquakes, floods, and storms to challenges like supply chain disruptions, cyberattacks, and technological disasters. Identifying these potential disasters is critical in preparing an effective response.

Conducting a Business Impact Analysis A business impact analysis (BIA) helps in understanding the potential impact of a disruption on your business. This analysis focuses on critical business functions (such as Operations, Product/Service Development, Financial Management, etc.) and helps in prioritizing recovery objectives and possible consequences. Here is an overview of what a business impact analysis involves:

  • Identifying critical business functions
  • Identify potential disruptions
  • Assess impact severity
  • Set recovery time objectives
  • Prioritize critical functions
  • Identify dependencies
  • Gather data and input
  • Document BIA results
  • Develop business continuity plan
  • Regular review and updates

For small businesses, the key is to keep the process simple, practical, and focused on the most critical aspects of your operation. While the scale may be smaller, the goal remains the same: to ensure that your business can continue functioning in the face of unexpected challenges or disasters.

Creating a Disaster Recovery Team

In a small business, some team members may wear multiple hats, and the roles may be adapted to fit the specific needs of the organization. The key is to ensure that responsibilities are clearly defined, and team members are trained and prepared to respond effectively to disasters or disruptions. Communication and coordination within the team are essential for a successful disaster recovery effort.

Training the Team 

Ensuring the preparedness of your disaster recovery team is crucial for effective response in case of a disaster or disruption. To achieve this, consider the following steps for training your disaster recovery team:

  • Familiarize team members with the disaster recovery plan
  • Orientation and introduction
  • Role-specific training
  • Scenario-based training
  • Tabletop exercises
  • Drills and simulations
  • Cross-training
  • Documentation and reporting
  • External training and certification

Developing the Disaster Recovery Plan

Now that we’ve covered the basics of a disaster recovery plan, risk assessment, and assembling a disaster recovery team, it’s time to focus on developing the actual recovery plan. Here’s a straightforward, step-by-step guide to help you create an effective disaster recovery plan for your small business:

Recovery Time Objectives (RTOs) and Recovery Point Objectives (RPOs) are essential components of a disaster recovery plan for small businesses. They help determine how quickly you need to recover your systems and data following a disruption.

Recovery Time Objective: Is the maximum acceptable downtime for your critical business functions and systems. It represents the time within which these functions and systems should be restored after a disaster.

Recovery Point Objective: Is the maximum allowable data loss in terms of time. It defines the point in time to which data must be recovered after a disaster. The choice of RPO should consider data value, storage capacity, and backup frequency.

RTOs and RPOs should align with your business’s unique needs, risks, and      resources. Striking the right balance between minimal downtime and data loss and what your business can realistically achieve is essential for an effective disaster recovery plan .

For small businesses, the importance of documenting a recovery plan is just as significant as it is for larger organizations. It can be argued that it’s even more critical for small businesses due to their typically limited resources and vulnerabilities. A well-documented recovery plan ensures the efficient allocation of resources, aids in survival during crises, maintains customer trust, helps with compliance, supports employees, and preserves critical relationships with suppliers and partners. Additionally, it can ease the process of obtaining insurance coverage or financing, mitigate the impact on the local community, and facilitate smooth transitions in ownership or management. In essence, a documented recovery plan is a cornerstone of small business resilience, safeguarding operations, assets, and reputation in times of adversity.

Integrating business continuity into a disaster recovery plan is especially crucial for small businesses. It means addressing not only IT recovery but also the entire organization’s ability to continue essential operations during and after a disaster. This holistic approach minimizes downtime for both technology and critical business functions, ensuring that limited resources are allocated effectively. It also enhances communication, flexibility, and adaptability in managing crises, while compliance and resilience improve stakeholder confidence. For small businesses, this integration is a cost-effective way to safeguard operations, build trust, and enhance long-term sustainability in the face of disruptions.

To secure your business from losses during a disaster, it is imperative to establish essential infrastructure, make use of diverse tools, and put in place efficient solutions. These encompass:

By investing in these critical infrastructure components, tools, and solutions, small businesses can significantly enhance their ability to protect against loss during and after disasters, ensuring a quicker and smoother recovery process.

To streamline communication protocols during and after disasters for small businesses, it is vital to develop a comprehensive plan that outlines roles, responsibilities, and contact information. Utilizing multiple communication channels with redundancy, maintaining updated emergency contact lists, and prioritizing message types are crucial. Investing in communication tools, conducting regular system tests, and designating a spokesperson for external communications enhance efficiency. Additionally, establishing clear chains of command, creating remote work policies, and training employees while maintaining feedback mechanisms contribute to effective communication. Post-disaster reviews help refine communication plans, ensuring that small businesses can efficiently coordinate both internal and external communications during critical times.

Regularly testing and updating an organization’s disaster recovery plan ensures its effectiveness when a crisis strikes. Testing not only identifies weaknesses but also helps employees become familiar with their roles during an emergency. Common exercises include tabletop exercises, where team members discuss hypothetical scenarios and their responses, and full-scale simulations, which mimic actual disaster situations. These tests evaluate the plan’s strengths and uncover areas for improvement. However, it’s crucial to base these exercises on realistic scenarios and to review them periodically to address evolving threats. Additionally, post-exercise debriefs, and incident reviews should be conducted to analyze what went well and what needs improvement. This feedback loop allows for continuous enhancement of the disaster recovery plan, incorporating lessons learned from testing and real incident outcomes to better protect the business and its stakeholders in the face of adversity.

Budgeting for disaster recovery is a critical aspect of small business preparedness. Small businesses should set aside a specific part of their annual budget for disaster recovery. This money should cover creating and maintaining a disaster plan, as well as training and equipment. It’s important to focus on protecting the most crucial parts of the business. Small businesses should also investigate insurance options like business interruption, property, or cyber insurance to help cover costs in case of a disaster. While insurance premiums may be an extra cost, they can provide financial help when a disaster strikes. A well-planned disaster recovery budget helps small businesses prepare and reduce financial stress during emergencies.

But what about those small businesses with limited budgets and resources? For those with limited budgets and resources, outsourcing your disaster recovery plan and solution to a managed service provider (MSP), is a great alternative. MSP’s can provide specialized expertise and a deep understanding of industry best practices, cutting-edge technologies, and evolving security threats, allowing small businesses to benefit from a tailored disaster recovery strategy without the need for extensive internal investments. Additionally, outsourcing to an MSP can enhance the efficiency and reliability of a disaster recovery process, ensuring quick response times and minimizing downtime in the event of a disruption.

We encourage small businesses to prioritize disaster recovery planning. At Veeam, our mission is to help every company bounce forward. As part of that we have put together a range of solutions tailored to small businesses’ needs, including Veeam-powered DRaaS , , and managed backup & DR services . See these solutions in more detail below.

  • Veeam-Powered DRaaS: Allows you to work with trusted service providers to customize a disaster recovery plan that fits your needs and budget. Built on Veeam Data Platform, our partners support customers from plan development to testing, documentation, and full management.
  • SMB Backup and Recovery Solutions: Gives you the freedom to manage and shift your infrastructure, storage, and backup restores as needed, while giving you the confidence to recover any data you need, even from cross-platform workloads – instantly.
  • Managed Backup and Disaster Recovery Services: Delivered through our VCSP partners, this solution gives you access to experts to proactively manage your data protection, accelerate time-to-value, and reduce the complexity of daily IT operations.

Start developing your disaster recovery plan today with Veeam’s expert support and bounce forward knowing you have a trusted partner to keep your business running smoothly. Start developing your disaster recovery plan today with Veeam’s expert support.

  • Veeam-Powered Disaster Recovery as a Service (DraaS)
  • Veeam SMB Backup Solutions
  • Veeam-Powered Managed Backup & DR Services

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Why every business should have a disaster preparedness plan & how to create one

Disasters can happen anywhere, anytime. From wildfires, mudslides and hurricanes to floods, tornadoes and earthquakes, natural disasters can sometimes hit at a moment's notice.

That doesn't even include other disasters, emergencies and events that could grind your business to a halt, such as the global COVID-19 pandemic, a humanitarian crisis at the Texas border, power outages, hazardous materials incidents, civil unrest, mass shootings or bombings.

Many of these disasters significantly impact your healthcare organization, your patients, your employees, their families and the community you serve. That's where disaster preparedness comes into play.

It might help to look at disasters from this perspective: Risk = Threat x Vulnerability x Consequence. 1

So, the more you can do to reduce or eliminate the contributing factors to risk (threat, vulnerability, and/or consequences), the more you can reduce your risk. In viewing your risk this way, you act with due diligence on the elements that you can control.

While you might not be able to reduce the threat of disasters, you can take steps to reduce your facility's vulnerability by planning for emergencies. In doing so, you diminish both the short-term and long-term consequences and bolster your resilience in the aftermath of a disaster — thus reducing your risk.

A prudent organization should start preparing well before a disaster or crisis hits. Experts agree that advance planning and disaster preparedness can significantly impact your company's ability to effectively handle an emergency.

Ready to get started? Read on.

Create a disaster plan before a crisis strikes

If you haven't already, carve out time now, before a crisis strikes, to make a disaster plan for your practice or facility.

When it comes to disaster preparedness, winging it just isn't an option. How quickly your company can get back to business depends on the emergency planning done today.

Follow these emergency response guidelines to serve as your go-to action plan when a disaster strikes.

Six key elements to include in your disaster plan

1 | prepare an office disaster kit.

Assemble items in advance so you can provide basic medical care where necessary. This kit should include some essential medical supplies and equipment that you will store in a safe, easy-to-access location.

At a bare minimum, your kit should include the following: 2

  • Essential business documents
  • Nonperishable food and bottled water
  • Computer backups
  • Flashlights with extra batteries
  • Battery-powered radio
  • Hand sanitizer and other infection prevention items
  • Exam gloves and other essential personal protective equipment (PPE)
  • Stethoscope, thermometer, etc.
  • Prescription pad
  • First-aid supplies and nonprescription medications

2 | Designate a possible alternate office location

Depending on the emergency, you might need to evacuate. Do some advance research on potential locations where you could continue to care for patients if your primary office has sustained damage or is no longer operational.

You may also want to purchase a generator to use in the event you lose power for an extended period of time.

If your healthcare organization provides in-facility resident care (such as long-term care facilities), evaluate and make decisions on shelter-in-place (SIP) provisions. Doing so helps prepare you for when a disaster occurs (think flood or prolonged power outages).

You should also determine what you plan to do if your community is not accessible to emergency responders, vendors and employees.

3 | Establish backup plans for patient records

More than 80% of physician practices now use electronic health records, so maintaining and protecting this patient data remains critical for your facility. 3

You should rely on multiple backup methods for redundancy, keeping the backups stored at an off-site location. Also, make sure you and your staff can easily access the records, so you can continue to provide quality care and treatment.

Backup options include:

  • Cloud-based storage
  • On-site data storage on redundant systems
  • Off-site/remote server
  • Portable hard drive/network-attached storage (NAS)
  • Flash drive/memory card

Though cloud-based/off-site backup options offer better protection against natural disasters, they require significant internet bandwidth to transmit data efficiently.

Therefore, if your internet service goes down during a disaster, it can impact your data backup and retrieval. 3

4 | Include employees in the planning process

Because a crisis affects employees at every level, take a team approach when planning for emergencies. Get employee input and buy-in from the start. Review disaster preparedness plan details with all staff members regularly.

Maintain an updated emergency contact list for all employees, including personal contact information such as cellphone numbers and email addresses. You might need this information to share vital communications during a disaster.

Designate critical staff, volunteer coverage and how to meet staff needs such as transportation to and from work. 4

5 | Plan for communication with vital stakeholders

Communicating during and after an emergency can pose many challenges. Determine how and what you might communicate to patients, residents, on-site visitors, family members and the community in a crisis.

Create different messages for each key audience, as their information needs will vary. Proactively hearing from you will inform your audience about what happened and what steps you're taking to handle the situation, as well as reassure them that you're doing everything you can.

Plan for various communications methods, which can include: 4

  • Direct-dial phone lines: Establish multiple, separate lines for both incoming and outgoing
  • Cellphones: You can pre-program phones with vital contact information and use them for emergency calls, texts and voicemail. If computer internet access isn't working, you can also use cellphones as hot spots
  • Communication apps: Consider cellphone apps such as Facebook Messenger and WhatsApp as alternative (or complementary) modes of communication, especially if landlines don't work
  • Email: You can easily segment audiences with internal email lists, such as employees, patients, vendors, etc.
  • Social media: Ready.gov offers a Business Emergency Preparedness Social Media Toolkit with safety and preparedness messages ready to customize and share on your company's social media channels. You can also find specific toolkits for some common emergencies, such as flooding, hurricanes and power outages. Think visually for more engaging social media posts by using images, graphics and emojis. And use hashtags for trending topics and your geographic location
  • Radios: Radios can come in handy for communication between healthcare facilities or emergency organizations. Handheld radios (with separate frequencies) provide a reliable option for internal use among on-site employees
  • Telephone notification systems: When you need to communicate to a mass audience (such as your local community), consider providers such as Everbridge and Send Word Now

6 | Review your plan annually

Perform an internal review of the emergency plan on an annual basis and update if necessary based on factors such as regulatory changes, potential new hazards and budgetary considerations; the Hospital Disaster Preparedness Self-Assessment Tool from the American College of Emergency Physicians is a helpful tool to assist in revising and updating your existing emergency preparedness plan every year — or to lay the foundation for a new one if none exists.

In addition to the above elements, make sure you put strong community partnerships in place.

As a healthcare facility, you serve your local community, making it imperative to build and maintain strong partnerships with other businesses, nonprofits and community organizations. In doing so, you can not only share some of the workload in a disaster, but you can also complement efforts and accomplish in-the-moment tasks more efficiently.

For instance, the Assistant Secretary for Preparedness and Response (ASPR) developed a Hospital Preparedness Program (HPP) that provides leadership and funding to states to boost the ability of HPP-funded recipients to plan for and respond to major disasters. 5

In a nutshell, HPP prepares healthcare delivery systems to save lives by developing healthcare coalitions (HCCs).

Whether you participate in HCCs or simply adopt this collaborative approach, you can cooperate on shared preparedness plans, conduct hands-on exercises and emergency drills and coordinate equipment and supply needs. This team approach helps improve patient outcomes during a disaster and facilitate resilience and recovery for both your business and your community. 5

Also, consider these topics in your facility's disaster plan:

  • Telehealth and virtual provider interface
  • Emergency nutritional supplies
  • Personal protective equipment (and gear for highly contaminated locations)
  • External access to important procedures and protocols
  • Staff fatigue and accommodations

Don't forget to also create a personal and family plan for disaster preparedness. To get help with your plan, go to Ready.gov .

CMS requires disaster planning for certain healthcare providers

The Centers for Medicare & Medicaid Services (CMS) requires certain healthcare providers to have disaster preparedness plans in place as a condition for coverage or participation.

The four main elements of an emergency preparedness program include the following:

1. Risk assessment and planning

2. Policies and procedures

3. A communication plan

4. Training and testing

The original rule — published in 2016 — required providers to comply by Nov. 15, 2017, with new revisions to the rule published Sept. 30, 2019.

The Joint Commission (an independent, not-for-profit organization that accredits and certifies healthcare organizations) or similar organizations verifies a healthcare provider's compliance with the rule.

For example, federal regulations require Medicare- and Medicaid-certified nursing homes to create and maintain written emergency plans and provide employees with emergency preparedness training.

CMS published an emergency preparedness checklist that healthcare communities, including nursing homes, can use as emergency response guidelines to develop and update plans.

See below for CMS listed entities for disaster plan requirements*:

  • §416.54, Condition for Coverage for Ambulatory Surgical Centers (ASCs)
  • §418.113, Condition of Participation for Hospices
  • §441.184, Requirement for Psychiatric Residential Treatment Facilities (PRTFs)
  • §460.84, Requirement for Programs of All-Inclusive Care for the Elderly (PACE)
  • §482.15, Condition of Participation for Hospitals §482.78, Requirement for Transplant Centers
  • §483.73, Requirement for Long-Term Care (LTC) Facilities
  • §483.475, Condition of Participation for Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICF/IID)
  • §484.22, Condition of Participation for Home Health Agencies (HHAs)
  • §485.68, Condition of Participation for Comprehensive Outpatient Rehabilitation Facilities (CORFs)
  • §485.625, Condition of Participation for Critical Access Hospitals (CAHs)
  • §485.727, Conditions of Participation for Clinics, Rehabilitation Agencies, and Public Health Agencies as Providers of Outpatient Physical Therapy and Speech-Language Pathology Services
  • §485.920, Condition of Participation for Community Mental Health Centers (CMHCs)
  • §486.360, Condition of Participation for Organ Procurement Organizations (OPOs)
  • §491.12, Conditions for Certification for Rural Health Clinics (RHCs) and Conditions for Coverage for Federally Qualified Health Centers (FQHCs)
  • §494.62, Condition for Coverage for End-Stage Renal Disease (ESRD) Facilities

Additional resources

Emergency preparedness for every emergency.

The U.S. Department of Health And Human Services, Centers for Medicare & Medicaid Services provides an extensive emergency preparedness checklist that walks you through everything from developing an emergency plan and collaborating with suppliers/providers to creating an evacuation plan and reviewing your emergency plan annually.

Medications and disaster preparedness

Patient populations that depend on medications to assist with managing chronic illnesses may face difficulties if provider locations are inaccessible or if medications are stored improperly.

  • Preparing medication information ahead of time
  • Knowing medication storage requirements and stability

Emergency preparedness regulation FAQ

Check out the below frequently asked questions from CMS to learn more about emergency preparedness regulations.

  • Documentation requirements
  • Risk assessments and documentation
  • Policies, procedures and documentation
  • Technical corrections
Ready to build or enhance your disaster preparedness plan? We can help. Contact your McKesson Medical-Surgical account manager to help set up your alternate site locations before the event occurs.

1: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5314965/ 2: https://www.ready.pa.gov/BePrepared/BuildKit/Pages/For-The-Workplace.aspx 3: https://www.mgma.com/data/data-stories/backing-up-your-patient-data-a-compliance-and-bus 4: https://www.calhospitalprepare.org/sites/main/files/fileattachments/eop_checklist_mar_2020.pdf 5: https://www.phe.gov/preparedness/planning/hpp/pages/default.aspx

* List not all-inclusive

© 2021 McKesson Medical-Surgical Inc.

  • Disaster Preparedness

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Disaster Preparedness: Business Disaster Plan

Business Disaster Plan

Master Disaster Checklist

If you want to keep your property, family, pets, and business safe during natural disasters, it’s important to be prepared. This master checklist gives you a good foundation for what to do, what to have, and what to plan for.

  • Secure Contact Information: Make sure you have a printed out copy as the power may be out and you might not have access to your computer or documents. Include names and telephone numbers, as well as out-of-town friends or family who might be able to help you. It’s important to have an out-of-town friend listed because your friends who live in your town might not be able to help you if a disaster affected them, too. Additionally, prearrange a nearby meet-up place after the emergency. It could be the local high school, a relative’s home, or a grocery store.
  • Identify a Safe Room: Point out which room is the safest room in your home. This should be an interior room without windows, if possible (maybe a closet or a bathroom). This is the place your family should seek shelter when storm warnings are issued.
  • Stay Informed: Make sure that you have a portable radio with fully charged batteries so that you can get the latest up-to-date information about the disaster. If you are in the path of the disaster, go to your pre-designated shelter area immediately.
  • Take Photos/Video of Your Property: If you have an inventory of your valuables and possessions you are likely to be able to claim up to 20% more insurance than if you don’t. Taking photos and videos with your cell phone is an easy way to document your items. Be sure to upload all the images to secure cloud backup and not just store on your property.
  • Charge Electronic Devices: During a disaster, you may lose power. Ensure your cell phone is fully charged, along with other electronic devices like tablets and laptop computers. Also, think about purchasing a solar-powered backup charging device .
  • Get Cash: When the power goes out, ATM machines won’t work. Get plenty of one dollar bills because not many people will have change for twenty and hundred dollar bills. Try to aim for ones, fives, and tens.
  • Fill Up on Gas: Fill your gas tank. When the power goes out, gas pumps won’t work.
  • First Aid Kits : For $20, you can have medical supply basics — all in one place — and ready to use. Minor as well as major injuries are possible during an earthquake and it’s possible that emergency services will be overwhelmed, so having a first aid kit is essential.
  • Solar Cell Phone Charger : Solar powered charges start in the mid-$20 range and go up from there. The best selling Amazon solar charger is $60 and is fast with “industrial-strength PET polymer faced solar panels sewn into a rugged polyester canvas offer weather-resistant outdoor durability.” If the power goes out, you might have no other way to charge your phone.
  • Crank-Powered Radio : You can pay upwards of $100 for a decent crank radio, but you don’t have to spend that much. The best-selling Amazon crank radio is only $20!
  • Emergency Water Filter : There’s no need for an expensive filtration system. The LifeStraw Personal Water Filter has 5,000 reviews and is only $20! The LifeStraw “removes minimum 99.9999% of waterborne bacteria, 99.9% of waterborne protozoan parasites, and filters to 0.2 microns; surpasses EPA filter standards.”
  • Bottled Water (minimum of three gallons for each member of your family)
  • Battery-Powered Radio
  • Battery-Powered Lantern
  • Emergency Food Supply
  • Basic Tools (utility knife, pliers, wrench, tape, compass)
  • Toiletries (toothbrush, toothpaste, contact solution, toilet paper)
  • Pencils and Paper
  • Pet Supplies (food, litter)
  • Sleeping Bag
  • Change of Clothes
  • Plastic Garbage Bags
  • Hand Sanitizer
  • Cleaning Wipes
  • Have a “Go Bag”: Having an emergency bag packed with essentials (food, clothes, toiletries, cash, etc.) can save you time in a crisis. P.S. A little bit of toilet paper goes a long way…
  • Identification (copy of driver’s license or passport)
  • Insurance Policies
  • Birth Certificates
  • Marriage Certificates
  • Proof of Residence (copy of lease, mortgage documents)
  • Deeds or Wills
  • Tax Returns
  • Social Security Cards
  • Plan for Your Pets: Many hotels and motels won’t accommodate your pets, so if your plan is to evacuate to a hotel, then you’ll need to find them a safe boarding kennels or cattery which is outside of the disaster’s impact zone. Be sure you have plenty of your pet’s preferred food and whatever medications they might need.
  • Refill Your Medications: Make sure that you have plenty of your prescription medicines on hand. If a disaster hits your area, the last thing you want to worry about is a medical emergency. 
  • Disaster Insurance: Check your insurance coverage as part of your disaster preparedness plan. Many home insurance policies do not cover hazards like flooding caused by hurricanes, for example. If you live in a disaster-prone area, consider getting insurance to cover damages.
  • Have a Plan for After the Disaster: After a disaster, get out of town until emergency services and law enforcement have gotten control of the situation. Unfortunately, like many other disaster situations, there are people who will try to take advantage of the chaos. It’s best to avoid being in the disaster zone until things are under control.

Is YOUR Business Prepared?

A disaster preparedness plan for your business is just as important as having a disaster preparedness plan in place for your home and family.

Click here for information on Coronavirus-2019 (COVID19)

Business Risk Assessment

There are lots of different types of disasters and hazards that can occur. In your risk assessment, you need to identify the potential hazards and what could possibly happen if the said hazard did occur to your business.

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The packaged plastic sheet has a wide range of uses in and around the home, garden, and garage. It can be used to cover and protect furniture, appliances, and equipment from dust, dirt, and moisture.

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The Yougfin 38-piece tool set is forged from high hardness steel, providing excellent sturdiness and durability. Coated with a chrome plated finish, it improves glossiness and corrosion resistance, meeting or exceeding ANSI critical standards.

For example, if you live in Southern California, what would you do if an earthquake damaged your car dealership? If you live in Tulsa, what would you do if a tornado ripped apart your restaurant? You shouldn’t be afraid or paranoid but you need to be prepared.

Below is a list of disaster possibilities that you should consider regarding your business.

disaster plan in a business

Disaster Preparedness Plan: Hazards

  • Natural Hazards ( earthquakes , hurricanes , tornadoes )
  • Workplace Violence
  • Mechanical Breakdowns
  • Supplier Failures
  • Cyber Attacks
  • Spillage of Hazardous Materials

Disaster Preparedness Plan: Assets at Risk

  • Employees and other people at your place of business
  • Property (critical structure and safety)
  • Systems and equipment
  • Supply chain interruptions
  • Reputation of business and confidence
  • Business operations
  • Impact on the environment

Disaster Preparedness Plan: Impact

  • Potential casualties
  • Damage to property
  • Loss of customers
  • Interruption to business
  • Environmental contamination
  • Fines and penalties
  • Loss of confidence in your business organization

There are many types of disaster which can impact on your business physically, emotionally, and financially. Without a great disaster preparedness plan, there’s a very real chance that your business might not survive a disaster at all!

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For the latest incoming storm projections, see : National Weather Service Forecast

LA City Seal

LA City Disaster Recovery Services

Servicios de Recuperación de Desastres de la Ciudad de Los Ángeles

Calfornia and LA County Seal

State of California and LA County Disaster Recovery Services

IMPORTANT INFORMATION FOR HOMEOWNERS, RENTERS AND BUSINESS OWNERS:

If you suffered damages from the February rainstorm, please fill out this damage assessment survey hosted by LA County.   Completing this online survey will help LA County collect information on estimated business- or home-owner repair costs from early February storm damage. The data will be used to determine if cumulative damages are enough to qualify our area for state- or federally-funded disaster assistance. This form does not guarantee eligibility and is not an application for assistance. However, it is the County's first requested step. Completion of this survey does not guarantee a disaster declaration will be received or that County residents will be eligible to receive assistance. 

LA City residents are encouraged to connect with MyLA311 if they require assistance.

Nongovernmental Recovery Services 

NOTE: The details herein about disaster service providers is for general informational purposes only. It is offered in good faith; however, the City of Los Angeles ("City") makes no representation, promise or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of the contents herein. All references are for the convenience of the public and do not constitute an endorsement or recommendation. The City is not responsible or liable for any loss or damage incurred as a result of the use of or reliance on the services provided by organizations not a part of the City.

American Red Cross

In the immediate aftermath of a disaster, the Red Cross helps to meet the urgent needs of those affected and focuses on providing safe shelter, food, emotional support, first aid, and health services. 

The Red Cross also plays a critical role in helping families and communities recover in the weeks and months after a disaster. To help communities recover, the Red Cross often brings groups and agencies together to plan recovery activities.

Residents affected by this month's rain event and in need of Red Cross disaster assistance can visit RedCross.org/Get-Help .

City Response

Mud and Debris Flow

City agencies are responding to reports of mudslides and debris flows particularly along canyon roads and hillsides.

Building and Safety Inspectors are assessing homes near the affected areas, and the Bureau of Engineering team has assessed the need for restoration of slope stability and has already begun to reconstruct the affected hillsides.

Department of Transportation Traffic Officers have been deployed to support multiple closures and direct drivers away from impacted areas. As recovery work continues, drivers are advised to avoid canyon roads which may be subject to sudden and intermittent closures as city crews work on assessment and repairs.

Heavy winds and rain caused multiple power outages across Los Angeles. Thanks to the work of LADWP crews, more than 100,000 households have had their power restored since the start of the storm. Angelenos can report outages at LADWP.com/Outages .

Stormwater Capture

In collaboration with LA County Flood Control and Los Angeles Department of Water and Power, preliminary estimates show that more than 7 billion gallons of stormwater have been captured in Los Angeles alone since the beginning of Sunday’s storm event.

Shelter Response During The Storm

With the alert of severe weather in the forecast for our region, Los Angeles established a coordinated approach in partnership with the Los Angeles Homeless Services Authority to outreach and connect with unhoused Angelenos across the City. Targeted outreach was done in the waterways and high flooding areas, including in the L.A. River and Sepulveda Basin. We secured hundreds of hotel vouchers and opened additional recreation and park shelters to keep unhoused Angelenos safe and dry with access to supportive services.

The work doesn’t stop there, we are shifting the way we recover by including a plan after the storm with the goal of connecting unhoused Angelenos in a shelter with ongoing services and interim housing options. Visit  Ready.LACity.gov to learn how you can plan for any emergency and create an emergency kit for any disaster. 

Frequently Asked Questions After The Storm

Angelenos can report damage to 311. The Department of Building and Safety has been activated to go out and assess reports of damage.

If my house has damages, where can I receive assistance now?

Angelenos are recommended to contact their insurance company and document their damage. Document every loss and expense. Take photos, keep receipts and contact your Insurance Agent. A recovery plan can take these things into account and help you make the most of your time and money.  

How do I find out which roads are closed?

The city maintains an Interactive Road Closure map .

What if my backyard is stable, but I'm worried it's about to collapse? Where can I find help?

We recommend Angelenos to seek advice from a geotechnical expert. A professional can advise on the best ways to prevent or reduce landslide risk without creating further hazards.

My house was yellow or red tagged, what do I do? Where do I get updates from?

If evacuated, return home only when it has been indicated and safe to do so. The Department of Building and Safety will continue to communicate with impacted households until repairs have been completed. Find more information on how to determine when there is a threat of flash flooding and debris flows  here .

What if there is a broken pipe in my apartment or home?

Floodwaters damage materials, leaving mud, silt and contaminants that can promote the growth of  mold . You need to  safely and thoroughly dry your home to reduce these hazards and the damage they cause. LADWP recommends having an emergency supply of water in case the pipe infrastructure in your area receives damage during an emergency. Find disaster preparedness resources from LADWP   here .

How can I prepare for future flooding?

During the storm season, local Fire Stations offer free sand and sandbags. Find your local station  here .

How to report a power outage?

  • 1-800-DIAL DWP (1-800-342-5397) Available 24/7 for emergency and outage calls
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Army vet says prepper food company booming as more Americans plan for disaster in 2024

Combat-disabled veterans launched a prepper beef company to help families store quality protein for emergencies.

Jason Nelson, founder of PrepperBeef.com, explained how most people overlook how much food their family would need in case of a catastrophe, and gave tips on how to better prepare.

U.S. Army veteran who launched prepping food company shares how Americans can prep for emergencies

Jason Nelson, founder of PrepperBeef.com, explained how most people overlook how much food their family would need in case of a catastrophe, and gave tips on how to better prepare.

While doomsday "prepping" may once have been considered extreme, concerns about the food supply and looming disasters have left millions of Americans stockpiling for emergency situations.

"[M]ost people are concerned, not just about the larger conflicts, but I think that they are concerned about the price of current goods and they see the availability of things, shrinkflation if you will," Prepper All Naturals founder Jason Nelson told Fox Business . "And I think people are becoming more and more aware of just how precarious their access to those items are."

Nelson, a U.S. Army combat disabled veteran and Texas congressional candidate, launched his cooked freeze-dried beef company in 2021 with his fellow combat-disabled "brother." The pair saw a need in the market for quality animal protein that could be stored long-term amid growing food instability across the globe.

Demand for their products have exploded since then, and he says his company has doubled in size every six months.

BUNKERS AREN'T JUST FOR BILLIONAIRES: INSIDE UNDERGROUND SPACES FOR AVERAGE AMERICANS  

Prepper All Naturals founder Jason Nelson and image of empty grocery shelves

Prepper All Naturals founder Jason Nelson hopes his freeze-dried beef products can help families prepare for emergencies. (Prepper All Naturals/Getty Images)

Prepping has become more mainstream, he believes, because the pandemic made more Americans realize just how dependent they are on others to provide for their needs.

"I think people also realized that they were kind of helpless. So it wasn't just that they couldn't get access to stuff, but it was that they had no ability whatsoever to supplement that in their own lives. So even whether it be a creature comfort or a basic necessity, I think that that awareness overall broadened during COVID and of course, is exacerbated right now because people, once they started paying attention to the supply chain, they're able to connect the dots between, for example, the breadbasket in Ukraine or rice shortages coming out of Asia, or, drought affecting beef production here in the United States," he remarked.

The USDA reported that the nationwide beef cattle inventory dropped to a record low last week. Heavy government regulations and persistent drought over the last three years have put pressure on farmers and raised prices for consumers.

Americans need to consider the vulnerablity of the U.S. food supply and make plans accordingly, Nelson argues.

‘TRANSFORMERS’ STAR ON BECOMING A DOOMSDAY PREPPER: PLANNING IN CASE ‘S*** HITS THE FAN’ IN LOS ANGELES

Costco-caps-essential-goods

During the spring of 2020, many Americans hoarded toilet paper and other household basics. ( JOSH EDELSON/AFP via Getty Images / Getty Images)

"I just think a lot of people don't know where food comes from. They don't understand the distribution system. If they understood how that works, that there's about two weeks worth of food in any distribution system around the United States, once those systems start to break down, the availability of food is going to drop to near zero. And so what people think they have in their cabinets that will help them survive is very different than actually sitting down and doing an analysis of caloric intake for your family, what they need for not just survivability, but maybe even thriveability," he said.

Nelson hopes his company's products can help families start their own emergency prepping. The cooked and freeze-dried beef is designed for long-term storage, but also is superior quality from what you'd find in a local grocery store, he argues.

"I go out and visit them every week in a pasture, but then they're humanely slaughtered, hand-carved, sous vide and then freeze-dried," he explained. "It's all prime cattle from right here in Texas. It's not select cattle that the government sold at auction from Argentina, which is what a lot of people are eating at their grocery stores. And I think a lot of people don't realize the quality of beef that they're getting."

"So not only is it a higher quality beef, but obviously the design behind it is to allow people to supplement not only their long-term storage that they would normally set aside, but their emergency supplies as well," he continued.

Shoppers inside a grocery store in San Francisco, California, on May 2, 2022.

Inflation has spiked the price of groceries in the past few years. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

When prepping for an emergency, he recommends using Maslow's hierarchy of needs as a guide. He suggests families calculate how many calories they'd need to survive for more than a few days.

"I just try to remind people, if the electricity goes out, all your frozen goods are gone within three days. And if you don't have anything canned, as in you can't can that food and there's no ability to do that, then you have to ask yourself, how much of a food supply do you need to get yourself through that?" he said.

While these kinds of discussions can be scary to think about, he hopes his products can help families get started on becoming better prepared for whatever may come.

"I don't want people to just come buy my beef and then set it aside and go, 'We're good for the apocalypse.' There's so many other things that people need to do to be prepared, but what we hope to be is just a supplement for that, to be able to sustain people, give them some freedom in deciding with their family what they can do, what they can eat and, more importantly, to be able to help start that conversation with a lot of people who may have been afraid to on what they really need to do to be self-sustainable," Nelson said.

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Fox Business' Kennedy Hayes contributed to this report.

disaster plan in a business

IMAGES

  1. Disaster Preparedness Plan for Business: The CIO’s Action Plan

    disaster plan in a business

  2. 7 Considerations for Disaster Planning

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  3. What is a Disaster Recovery Plan (DRP) and How Do You Write One?

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  4. Natural Disaster Planning for Businesses

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  5. How to Create a Disaster Recovery Plan

    disaster plan in a business

  6. Disaster Planning and Recovery

    disaster plan in a business

COMMENTS

  1. Business Emergency Plan: 7 Steps for Disaster Preparedness

    Step 1. Develop the outline and guidelines of your business emergency plan. First, before you can actually write out your emergency preparedness plan, you need to organize your business's objectives and guidelines for the plan.

  2. Prepare for emergencies

    Step 1: Assess your risk Every business has unique vulnerabilities and weaknesses. Knowing which disasters are most likely to affect your business can help you to return to operations faster. A back-to-business self-assessment can help you to assess your risks for common hazards such as hurricanes, wildfires, flooding, or even cyberattacks.

  3. Prepare My Business for an Emergency

    Yes No DHS/FEMA sponsors a "Ready Business" resource to help businesses develop a preparedness program to create a plan for the impact of many hazards.

  4. How to Create a Disaster Plan for Your Business

    "A business continuity plan is a defined, documented strategy designed to help business owners and their employees prepare for any event that may disrupt business operations, including...

  5. Recover from disasters

    Writing and implementing a business continuity plan will help you minimize financial loss when your business faces a disaster. Your business continuity plan should: Identify and document critical business functions and processes Organize a business continuity team Evaluate recovery strategies

  6. Small Business Preparedness

    These include: creating a disaster plan, identifying priorities, training employees on emergency preparedness, and reviewing the business' insurance coverage. Here are resources to help prepare for disasters and organize your response. Issues / Disasters / Quick Guide: Small Business Preparedness Download Published January 01, 2015 Share

  7. Ready Business

    Disasters and Emergencies All Hazards Emergency Alerts Attacks in Public Places Avalanche Biohazard Exposure Cybersecurity Drought Earthquakes Explosions Extreme Heat Floods Chemicals and Hazardous Materials Incidents Home Fires Home Safety Household Chemical Emergencies Hurricanes Landslides & Debris Flow Radiation Emergencies Pandemic

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    A good disaster plan means fewer days out of business, better communication with customers, and a better settlement from your insurance company. Add it all up and your plan could be the reason your small business beats the odds. Look, we know you have a long to-do list.

  9. PDF Small Business and Nonprofit Disaster Preparedness Guide

    Step 1: Assess your risk Every business has unique vulnerabilities and weaknesses. Knowing which disasters are most likely to afect your business can help you to return to operations quicker. A "back to business" self-assessment can help you to assess your risks for common hazards like hurricanes, wildfires, flooding, or even cyberattacks.

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    Start with a checklist. A business disaster checklist offers an overview of the components of a small business recovery plan. Keep it handy as you create your plan, and check off each completed action to make sure you don't miss a crucial step. A checklist should include sections on communications, data, employees, operations and safety.

  11. How to Write a Disaster Recovery Plan for Your Business

    Business disaster recovery (DR): Disaster recovery planning focuses on minimizing unplanned downtime and restoring critical business operations to facilitate business continuity. This may include restoring data, IT assets, hardware including production machinery, or getting employees back to work.

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    The list goes on, from natural disasters like floods and earthquakes to cyberattacks and equipment failures. A comprehensive guide to creating a disaster recovery plan can help you: Minimize downtime and loss of revenue. Protect your business's reputation and customer trust. Ensure the safety and well-being of employees.

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    Assess your risks and potential business impacts to determine ways you can be most effective in disaster planning. Establish an evacuation plan. Designate primary and secondary evacuation routes and exits for your employees. Make sure that routes and exits are well lit, clearly marked and easily accessible. Create an evacuation plan in advance ...

  15. How to Build a Disaster Recovery Plan for Your Small Business

    How to Build a Disaster Recovery Plan for Your Small Business The road to recovery after a disaster doesn't have to be painful. Learn the six steps you need to take to build an effective recovery plan for your business. By: Jamie Johnson , Contributor Share

  16. What Is a Disaster Recovery Plan? 4 Examples

    A disaster recovery plan defines instructions that standardize how a particular organization responds to disruptive events, such as cyber attacks, natural disasters, and power outages. A disruptive event may result in loss of brand authority, loss of customer trust, or financial loss.

  17. Small Business Disaster Planning & Preparation: A Beginner's Guide

    Why do I need a small business disaster plan? Hope is a deterrent for planning for the worst. Small business owners are often optimistic; by definition, that means they may not entertain the possibility of bad outcomes. These sunny expectations can help with building a business, overcoming daily problems, and fostering a can-do attitude.

  18. Develop a Disaster Recovery Plan for Small Business

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  19. PDF Disaster Preparedness and Recovery Plan

    Disaster Preparedness and Recovery Plan ix | P a g e Executive Summary In the wake of a disaster, access to capital, contracting opportunities, business counseling and technical training services are critical to communities, businesses, and individuals. The U.S. Small Business Administration's (SBA) Disaster Preparedness and Recovery Plan

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    The Centers for Medicare & Medicaid Services (CMS) requires certain healthcare providers to have disaster preparedness plans in place as a condition for coverage or participation. The four main elements of an emergency preparedness program include the following: 1. Risk assessment and planning.

  21. PDF Ready Business HURRICANE TOOLKIT

    Ready Business Hurricane Toolkit is a comprehensive guide for businesses to prepare for and recover from hurricanes and tropical storms. It covers topics such as risk assessment, emergency planning, communication, insurance, and recovery strategies. Download the PDF and learn how to protect your business and employees from the impacts of hurricanes.

  22. Disaster Recovery vs Business Continuity: What You Need to Know

    A business continuity plan (BCP) is a broader document that covers not only the IT aspects, but also the operational, financial, legal, and human aspects of your business in the event of a disruption.

  23. Disaster Preparedness: Business Disaster Plan

    Disaster Supplies Kit: A disaster supplies kit is essential to keeping you and your family safe. It should include non-perishable food, water, medical supplies, clothes, pet food and supplies, medications, batteries, flashlights, etc. Consider the following list: First Aid Kits: For $20, you can have medical supply basics — all in one place ...

  24. Don't let a natural disaster derail your business

    Make it a priority to plan. In the event of a natural disaster, you'll want your insurance agent's phone number and email address at the ready. You'll also need access to all your business files, insurance policies, banking information, and employee and vendor contact information. ... Having a contingency plan is vital for your business ...

  25. February 2024 Storm Recovery

    The work doesn't stop there, we are shifting the way we recover by including a plan after the storm with the goal of connecting unhoused Angelenos in a shelter with ongoing services and interim housing options. Visit Ready.LACity.gov to learn how you can plan for any emergency and create an emergency kit for any disaster.

  26. Army vet says prepper food company booming as more Americans plan for

    Army vet says prepper food company booming as more Americans plan for disaster in 2024 Combat-disabled veterans launched a prepper beef company to help families store quality protein for emergencies

  27. Disaster Preparedness and Recovery Plan

    The Small Business Administration's (SBA) Disaster Preparedness and Recovery Plan (DPRP) ensures that all available agency resources are both provided and integrated with the federal government's overall support to disaster survivors. In the wake of disaster, access to capital, contracting opportunities, business counseling and technical ...