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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.

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