Dark skies.
When we watch news coverage in the wake of powerful summer storms, we often see scenes of cars crushed by trees and splintered buildings. But those striking pictures don’t tell the whole story of a storm’s impact especially on small businesses. A windstorm, tornado or even a fire dramatically impacts businesses.
Such a closure can affect a business’s income as much as its premises, and loss of income is one of the main reasons businesses don’t reopen after a disaster. Having appropriate Business Income insurance coverage can mean the difference between resuming operations once things return to normal and struggling to make up for the loss for weeks, months or even years to come.
Based on their experience with Storm Sandy this past October, respondents in a small business survey by the Hartford reported they would give the following advice to fellow small business owners:
- Review property insurance and business income coverage.
- Invest in a generator.
- Backup important records.
- Develop a business continuity plan.
A good disaster recovery plan includes a focus on prevention, assignment of a disaster recovery team and a plan for computer operation and protection of vital records. Review and revise your plan at least annually.