Every business should have a written Catastrophe/Disaster Recovery Plan. Insurance is only a financing mechanism to provide funds upon submission of a covered claim. Therefore, sound Risk Management concepts dictate that procedures be drafted and in place prior to a catastrophic event. Here are a few tips to help you get started:
Note: Each business is unique and must have a specific plan designed for its individual requirements.
Identify those perils which may cripple the corporation, such as tornado, flood, fire, extortion, explosions, labor issues, bomb threats, etc.
Consider the worst case scenario (total destruction)
Appoint an Emergency Coordinator and Disaster Recovery Committee
Get input from the fire department, police, civil defense, FEMA, utility companies, OSHA, weather service and Red Cross
Establish a Communication Plan to notify employees, suppliers, customers
Make reciprocal production arrangements with a “friendly competitor”
Off premises back up procedures with customer lists, accounts receivable and inventory
Create expediting policy to overnight replacement computers, and pre-arrange re-stocking
Develop a a written Evacuation Plan including diagrams
Hold periodic training sessions and update procedures no less than annually
Pre-arrange a special line of credit with your bank
Distinguish between pre-loss activities and post-loss activities
Know how to hire security immediately
Assign duties by department – purchasing, public relations, accounting, etc.