Calculating The True Cost Of Disaster Preparedness
Below is a MRR and PLR article in category Business -> subcategory Small Business.
Calculating the True Cost of Disaster Preparedness
Summary:
For small-business owners who believe disaster preparedness is costly, reconsidering is crucial. Being unprepared can lead to devastating consequences and far greater expenses.Article:
Many small-business owners hesitate to invest in disaster preparedness due to perceived costs. However, the costs of being unprepared can be catastrophic.
In July 1996, Dalph McNeil, president of Brookville Mining Equipment Corporation, faced a disaster when a nearby creek rose eight feet after heavy rainfall. This flood inundated expensive machinery with mud, washed away inventory, and collapsed a 30-foot section of wall, resulting in approximately $1.6 million in damages.
After receiving a Small Business Administration (SBA) disaster loan, McNeil relocated his plant away from flood risk areas. He also designated an employee as a "safety coordinator" responsible for quality assurance and conducting monthly meetings to ensure everyone understood the emergency procedures.
“You can never be too prepared for a disaster,” McNeil stated. He emphasized the importance of having a plan to resume operations swiftly, even hoping never to use it. However, he feels ready for any situation now.
Experts recommend starting with a comprehensive emergency action plan tailored to your business. This should account for various disaster scenarios and cover a timetable, budget, responsibility assignments, preventive measures, and a list of potential risks. Involving employees in this process can enhance outcomes.
Communication is crucial in post-disaster recovery. Keep updated contact lists for your insurance provider, suppliers, creditors, employees, customers, local media, utility companies, and emergency agencies. Ensure these lists are maintained by a primary and backup employee. Designate a spokesperson to inform the public that your business remains operational to counter any false rumors.
Reviewing insurance coverage regularly is also vital. Many are unaware that basic hazard insurance doesn’t include flood damage. It's essential to purchase separate flood insurance, as demonstrated by the over $10 billion in SBA disaster loans due to flood issues after hurricanes on the Gulf Coast.
The National Flood Insurance Program offers necessary coverage, but remember it must be purchased 30 days before a disaster to be effective. For more information, visit [floodsmart.gov](http://www.floodsmart.gov).
Investing in disaster preparedness might seem costly, but it ultimately safeguards your business against far greater losses.
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