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How to Protect Your Business From a Hurricane

Hawaii Hurricane

If your experience has taught you anything, it’s that relying on luck and good fortune is not a prudent way to run a business. Still, many business owners have a tendency to think that a disastrous event, like a hurricane, will never happen to them.

A hurricane not only jeopardizes the safety of your employees but could also close your business for weeks, if not permanently. Playing the waiting game with Mother Nature is a gamble your business cannot afford to take.

Although hurricane season typically lasts from June to November, keep in mind that a hurricane can strike whenever the conditions are right. That being said, it’s imperative to get your ducks in a row, starting now. Is there emergency equipment on site? Do your employees know what to do in the event of an emergency, like a hurricane? Do you?

Tips for developing an emergency preparedness plan

It can be overwhelming at first, but a carefully thought out and thorough emergency preparedness plan is the key to helping your business weather any storm. Here are a few things to consider:

1. Assess your risks and make a plan

Identify what risks your company would be susceptible to in the event of a hurricane and list their potential impact on operations. Are you in a flood zone? Will employees have difficulty getting to work? Will you have to temporarily relocate? Prioritize your risks and come up with a detailed plan of action for each.

2. Review your insurance coverage

After you’ve completed a risk assessment, it’s a good time to review your company’s insurance coverage. Even if your policy protects you from hurricane damage, does it also account for other ensuing disasters, such as flooding from heavy rain or fires from possible power surges? Consider inquiring about business interruption insurance with your insurance agent as well.

3. Develop a communications plan

In the chaos that often accompanies an emergency, a solid communications plan can minimize panic and the spread of misinformation. Keep employee contact information readily available and as printed list. Update the list at least twice a year. Client and vendor information should also be kept handy in case you need to inform them if and how long you’ll be closed or where you will be temporarily operating out of.

4. Protect your employees

While you want to keep your business open for as long as possible, you also have a responsibility (according to HIOSH and OSHA regulations) to keep your employees safe. After all, they are your company’s most important asset. Employees should have enough time to safely get home and be familiar with emergency protocols–consider holding an emergency preparedness class or at the very least distribute hurricane safety checklists.

5. Review personnel policies 

If you do have to temporarily close up shop, will your employees still get paid for work missed? Will they have to use vacation or sick leave to cover their absence? Go over these issues with your HR representative and be sure to take into account FLSA and FMLA regulations. In the event of a major hurricane, you may even have to consider layoffs. Cross train key employees so they can take on critical responsibilities if need be.

6. Secure your back up

Losing years or even decades worth of important company information would be devastating. Make sure your data backup is located in an alternate location (away from your computer) and preferably in a weatherproof safe. Cloud backups are another good option, but they rely on internet connection, which could be limited following a hurricane.

7. Line up secondary vendors

Due to Hawaii’s size and location, it’s likely that a major hurricane will affect businesses statewide. If a core part of your operations relies on other local businesses, it’s crucial to identify secondary suppliers and vendors. Get contracts and details worked out now in order to minimize downtime and get your business back on its feet faster.

You can’t stop a hurricane from coming, but you can minimize its impact on your business. How quickly and efficiently you are able to recover in the wake of a disaster can make or break the long term success of your business.

Disaster Preparedness Downloads

If you have any questions regarding your company’s hurricane preparedness plan, contact one of our helpful human resource consultants at (808) 791-4900.

This article is for informational purposes only and does not constitute legal advice. Readers should first consult their attorney, accountant or adviser before acting upon any information in this article.

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