Disaster Planning for Businesses

Small Business Disaster
Preparedness and Planning

There are a wide variety of events that could put a business out of operation--severe storm, fire, hazardous materials spill, criminal act, or a disruption in utility.

 

A little preplanning can make the difference between getting back to business quickly and shutting down indefinitely. By following the steps on these pages, you can create a simple business recovery plan that will cover a wide range of hazards.

Types of Incidents That Can Affect Businesses

• Immediate life/safety threat to employees and customers due to fire, storm, hazardous materials, accident, criminal act.
• Damage or destruction of building due to . (Fire, Severe Storm, Accident)
• Prohibited access to building, ranging from a few hours to a day or more. (Natural Disaster, Hazardous Material Spill, Major Crime Scene Investigation)
• Loss of utilities. (Severe Storm, Accident, Pipe Failure)
  - Electricity
  - Gas
  - Water
• Disruption of telephone or radio service. (Severe Storm, Accident, Fire)
• Release of hazardous materials. (Accidental Release Of Materials Stored On Site. Transportation Accidents.)
• Employees unable to report to work.. Employees and customers unable to get home. (Snowstorm, Flash Flooding)
• Loss of computers and/or business records. (Fire, Criminal Act)
• Interruption of critical supplies. (Severe Storm, Transportation Accident)
• After exploring various impacts of the above emergencies to your business, identify personnel, products, services, operations, facilities, and records that are critical to your operation.  Look for ways to minimize or prevent the impacts of emergencies and disasters on your business.

Steps Businesses Can Take to Minimize Disaster Impacts 

• Develop evacuation procedures for employees and customers.
• Locate shelter areas in your building for severe storms.
• Train some (if not all) of the employees in each work area:
  - Basic first aid (including CPR);
  - Use of fire extinguishers;
  - How to shut off utilities.
• Consider installing backup electrical power.
• Follow safe handling and storage procedures for hazardous materials
• Make sure fire alarm and sprinkler systems are properly maintained and tested.
• Stockpile critical supplies.
• Backup and protect critical records.
• Develop "Mutual Aid" agreements with other businesses to share critical resources and help each other during times of emergency.
• Review insurance policies to make sure coverage is adequate and up-to-date.

Small Business Emergency Plan Outline

I. Lines of Authority

• Who is in charge during an emergency?
• What is the line of succession? Who gets called when the boss is out of town?
• Who has authority to implement the emergency plan? Can supervisors order evacuations? Can they close the facility?

II. Response Procedures

Warning and Notification

·         How will building occupants be warned of emergency?

·         How will warnings from the weather service be received? A weather radio with tone alert is a good idea.

·         Call 911 if appropriate. Outline who is responsible for emergency notifications in the event of an emergency originating inside the facility.

·         Prepare lists of phone numbers for notifying managers/owners (especially after hours numbers).

Protect Lives of Employees and Customers

·         Pre-plan areas for shelters and provide maps and signs.

·         Evacuation procedures should be developed in advance. Designate assembly areas outside buildings. Make sure all employees know where the closest exit is in relation to their work area. Designate who will be in charge of accounting for missing persons and reporting to the person in charge. In larger buildings, break this task down by floor or section to make it more manageable.

·         Instruct employees to take shelter or evacuate as needed. Customers unfamiliar with procedures should be guided to the right places. Are special provisions needed to accommodate disabled or elderly persons?

Protect Property

·         Protection of property is the second priority after protecting lives. Property protection measures should only be undertaken if they can be done safely. Do not enter heavily damaged buildings until they are inspected by public safety officials.

·         Close the facility if necessary. Send employees home only if it is safe for them to travel.

·         Employees should know where utility shutoffs are located and how to use them.

·         Secure buildings as needed. Damaged buildings may need to be boarded up or have security guards assigned.

·         Make provisions for moving unprotected equipment and inventory to a safe location.

·         Protect or remove vital business records.

III. Criminal Acts/Workplace Violence

• Bomb Threat
• Robbery/Hostage Situation
• Destruction to property or Arson

IV. News Media

• The news media will likely show up to your business following a major emergency. Designate a single person to release information to reporters. If more than one person briefs the media, confusing, conflicting and incorrect information could be the result.
• Train employees in advance that only the designated media spokesperson should talk to reporters.
• If the incident lasts over several hours or days and media interest in the story remains strong, plan a media briefing schedule.

V. Recovery Phase

• As quickly as possible, assess the situation to determine the extent of the business disruption. Determine which parts of the operation can be resumed and which must be suspended or relocated.

• Contact insurance agent. Keep accurate records and documentation of damage and losses.
• Keep employees and clients briefed on recovery plans.