After a fire, flood, earthquake, or other major disaster, corporate officers, risk managers, and business owners are faced with making quick decisions related to disaster recovery. When the unthinkable happens, there are many different professionals or services that a business may need to hire quickly in order to minimize a business interruption.
I’ve worked with many clients who put together a basic business continuity plan. Based on decades of experience working in this type of chaotic environment, my advice is to assemble a disaster recovery team before it is needed.
First, identify the types of assistance that you think your business might need and include them in a business continuity plan, such as:
- Smoke and water restoration
- Document cleaning and restoration
- Someone to perform emergency repairs
- On site security guards
- General contractor for physical repairs
- Commercial real estate professional to find temporary or replacement facilities
- Insurance coverage attorney
- Forensic accountant who works with insured parties
- Media expert
Research and interview appropriate firms and individuals. Find out if a firm can be placed on retainer, in case of a catastrophic scenario such as an earthquake, which would guarantee that your firm will be served at the head of the line if you suffer a business interruption. Store your business continuity plan with the contact information for professionals on your disaster recovery team in an envelope, with a copy of the current property insurance policy, and store all of this information at an off site location, such as a bank. Contact the professionals you’ve chosen to work with on an annual basis and let them know about any significant changes to the business that may affect their role in the event of a business interruption.
Why should a business go through all of this trouble before they even have a business interruption?
Because risk managers, corporate officers, or business owners will have very little time to interview and review the credentials of the professionals they need most in the aftermath and chaos following a business interruption. If you’re using professionals that you assembled before the loss event, those professionals will have some existing knowledge of the business and will not have to learn everything about the business from scratch.
The chaotic time following a disaster can be a very emotional one for business owners, risk managers, and corporate officers. When possible, critical decisions should be made when there is no pressure, rather than in the emotional aftermath following a disaster.
Which professionals do you include in your disaster recovery team? Share your advice with other readers below, in the Comments section.
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