Emergency Preparedness for Small Business

Recent events have made us all aware of our vulnerability and the need to be prepared in case of disaster. Who knows when the next earthquake, fire, explosion or other disaster might strike. While much is published about personal survival, below are some simple steps to help YOUR BUSINESS survive. Invest an hour or two now developing your "Emergency Responsibility Matrix." It could be your most important business investment!

DISASTER PREPAREDNESS TIPS FOR BUSINESS
  • Keep copies of important papers off site (insurance, inventory, equipment list, tax returns, computer back-ups).
  • Take "before" photographs of your business, building and inventory. Keep photos off site.
  • Keep your business insurance current. Consider "business interruption" and/or "extra expense" coverage. Consult your agent for advice.
  • Keep staff roster, home numbers, emergency contact numbers, cell phone numbers, in the trunk of your car or another place out of your business.
  • Keep hard copies of all necessary forms for the daily operation of your business (i.e. order forms, receipts, sales forms, claim forms, etc.) (For use in case of electricity loss.)
  • Develop business emergency kit (i.e. blank paper, carbon paper, sharpened pencils, hand operated pencil sharpener, duct tape, scissors, cord, markers, etc.).
  • Know how to manually open your cash register - or have a cash box handy. (Do you have enough small bills on hand in case of emergency?)
  • Develop a relationship with a sister business in another city. (For emergency contact and/or to keep your business running on a night shift.)
  • Develop a matrix of staff responsibilities in case of emergency. (See sample.)
  • Know who in your organization knows first aid, CPR, etc. If there is no one, have a staff member trained.
  • Develop emergency survival kit for your office (i.e. flashlights, batteries, water, food, paper cups, first-aid supplies, toilet paper, zip lock bags, blankets, manual can opener, etc.).
  • Have all staff members keep personal emergency kits including change of clothes and tennis shoes, on site or in the trunk of their car.
  • Know location of gas and water shut-offs, and have tools to turn them off.
Click Here for Matrix

Emergency Responsibility Matrix
As Easy As 1 - 2 - 3
  1. List your employees by name
  2. Decide areas that need to be
    addressed in your company *

    *Responsibility areas might include (in addition to those listed):

    • Turn off office machines
    • Transport injured
    • Contact EOC with status of personnel, building, names of stranded customers
    • Communicate to out-of-state contact
    • Coordinate food & water; coordinate supplies
    • Get business back open
    • Publicize business is now open

  3. Assign responsibility
    P = Primary responsibility
    O = Secondary responsibility

AFTER THE DISASTER
  • Maintain a daily log of all actions taken (i.e. insurance adjuster visits, visit to FEMA office, temporary shelter costs, etc.). Include all expenses.
  • Maintain detailed records of estimates of repairs, invoices, receipts, canceled checks, etc.
  • Take photographs (or videotape) of the building and its' contents (to compare with "before" photos).
  • Check with your accountant to see if the IRS has allowed any extensions for filing tax reports due immediately after the disaster. With your accountant, decide which tax year is best to show the loss. (This applies only to federally declared disasters.)
  • If appropriate for you, file for Federal Emergency Management Agency (FEMA) and Small Business Administration (SBA) assistance.
  • If your home AND your business sustained damage, be sure to keep the records separate!
  • Discuss with your accountant the advisability of writing down inventory for damaged goods or transferring goods to charitable organizations.
  • Be advised that taxable gains are possible after disaster if insurance proceeds exceed cost basis and are not reinvested in a like kind of property.