Navigating Disasters: Small Businesses' Survival Strategies

Preparing for the Unexpected

September's National Preparedness Month underscores the urgency of planning for disasters, a lesson made stark by recent record-breaking wildfires and storms. The Insurance Institute for Business & Home Safety (IBHS), the Small Business Administration (SBA), and the Insurance Information Institute (Triple-I) recently hosted a webinar detailing strategies for weathering severe weather, COVID-19 disruptions, and other calamities. The session highlighted the experiences of two businesses that successfully navigated disaster, emphasizing the importance of a robust recovery plan and the role of various stakeholders in the process.

The Role of SBA and IBHS

Alex Contreras from the SBA's Office of Disaster Assistance discussed the agency's low-interest disaster loans, which are crucial for covering losses not insured. These loans can also fund mitigation efforts like fire-rated roofs and flood protection. Meanwhile, Gail Moraton from IBHS introduced the OFB-EZ tool, a free resource designed to simplify business continuity planning. This tool helps businesses assess their risk and maintain essential contact lists, crucial for swift recovery.

Insurance and Recovery Strategies

Loretta Worters from Triple-I emphasized the necessity of appropriate insurance coverage, detailing various policies including property, business income interruption, and flood insurance. She stressed the importance of a comprehensive inventory of business assets. Recent data shows that businesses with adequate insurance recover 20% faster than those without. For instance, Janice Jucker's Three Brothers Bakery, which had a well-prepared recovery plan, was operational within six weeks after Hurricane Harvey, compared to the national average recovery time of six months for similar disasters.

In conclusion, proactive disaster planning, leveraging resources like the SBA's loans and IBHS's tools, and ensuring comprehensive insurance coverage are key to small businesses' resilience. For readers, it's advisable to start planning today, maintain regular updates to your disaster plan, and ensure all stakeholders are well-informed and prepared.