Chicago Insurance Forum

ALBANY, NEW YORK – The exact details of a disaster can be predicted by no one but it is generally agreed that it is the result of man or nature. There is one thing however, that is for sure, according to the New York Insurance Association (NYIA), and that is that a disaster plan combined with sufficient insurance are central to the recovery of businesses – whether they are large or small. NYIA president, Ellen Melchionni, says that this is a good time for businesses in New York to make certain that they have a recovery plan in place that is accompanied by the right amount of insurance coverage. With this in mind, NYIA is recommending the following measures:
Prepare a plan for disaster recovery
Regardless of how small or even how large the business happens to be, there should be the development of a business impact analysis which identifies the necessary operation needed for the business to protect itself with respect to the possibility of a natural disaster. The larger corporations will often retain risk managers whose job it is to handle this task. There are other companies that will hire expert consultants with sufficient expertise in disaster planning and business recovery to help them with their plans, but it is also possible that in the case of the smaller businesses, they will do their own analysis and planning.
Any adequate business plan needs to include consideration of the following:

• Establishing an emergency response plan and training company employees in how to carry it out. It is important that the company’s employees know who to notify with regard to the disaster and what are the proper steps to take in order to preserve life and to limit property losses.
• Each phase of the plan needs to be clearly spelled out and responsibilities need to be assigned to the proper employees using clear and simple language. The procedures that are explained in the emergency response plan need to be reinforced through the use of regular, scheduled drills.
• Proper a listing of the most important phone numbers and necessary addresses. It is important to assure that it will be possible to get in touch with the key individuals that can assist following a disaster. For example, there should be included in such a list the numbers and addresses of local and state emergency management agencies, along with the company’s major clients, suppliers, realtors, contractors, insurance agents, financial institutions, and the claim representatives of the proper insurance companies.
• In order to prevent a loss of customers, you need to decide on a communications strategy for communicating with them. For example, notices need to be posted outside of the premises; clients need to be contacted by phone, e-mail or regular mail; and it is a good idea to place a notice in local newspapers.
• Make a list of items that you will be initially needed during the emergency. Consider for example, if a back-up power source will be needed. Consider whether it will be necessary to prepare a a back-up communications system.
• Human resources. In order to isolate your employees and customers from injury while on the premises, it is necessary to plan ahead. Take steps to imagine what will be the possible impact that a particular disaster might have on employees’ ability to come back to work and ways to assure that customers will be able to quickly return to shopping on your premise or receiving required goods or services.