What a Natural Disaster Can Mean for your Business


After a Hurricane or other natural disaster, families and neighborhoods affected focus their attention to the loss of personal effects, but what about those with businesses in the path of destruction?

Many people forget the costly impact that a disaster can have on a business and its employees. If a business loses power, they can lose supplies; they can miss important meetings and appointments, lose data and customers, and end up with enormous losses for themselves, employees and the community. So how do you go about protecting your business before and after a disaster like Hurricane Irma?

Have an Emergency Fund

Similar to managing personal finances, business finances and budgets must be strictly adhered to for consistent and smooth operation. An emergency fund of cash on hand is a necessity these days in order to survive not only a financial crisis, but unexpected business interruptions. This means that during the course of your monthly and yearly budgeting reviews, a definite plan for contributing to an emergency fund with cash should be part of the normal course of business. To do this and to properly budget, consider your specific business and the needs your business will have during and after an interruption. Consider not only the geographical location of the actual business and clients but that of key employees and data. Know your operating costs on a daily and weekly basis. Understand that you may need cash to pay for goods or services after crises and that credit may not be an option. As such, having that cash reserve from your emergency fund on hand will be key to your business’ survival.

Ensure You’re Insured

An equally as important tip for business survival is one which is almost always forgotten after the initial policy activates, which is to sit down with your insurance agent. The suggestion that this be done yearly is a must for a business if you want to adequately prepare your business for getting through a catastrophe. Review the policies to insure coverage for data backup, lost data, business and security breaches that may occur during a storm. A policy should cover loss and damage to the site, the inventory, equipment, employee salaries, debts, and office supplies, and cover liability should someone sustain an injury from something from your business during a storm or disaster. You want to be sure you have proper insurance for flooding and water damage in case your building or location becomes uninhabitable. Cover all the bases with your agent and go over your business policy carefully.

Make a Plan

Have an emergency plan. Know who to call for help and relief. Speak with your business attorney and get in the know about laws related to paying staff and other obligations during a crisis. Help guide your staff and employees after the storm as they may be out of commission to help you. This includes temporary office space or temporary staff set up to get in touch with clients or customers if necessary. Consider a generator if you own a restaurant or grocery store to avoid having food spoil and help to remain open during and after a storm to minimize revenue loss. You need your business up and running as soon as possible.

On the other hand, many businesses are affected because of both a lack of power and loss of phones. A doctor’s office, law office or financial company may end up with broken contracts, missed meetings and disgruntled business associates and clients. They may be unable to get on databases and may not be able to redirect their phone systems. Talk to your company’s IT department and phone providers to find out how to reroute calls and data during the repair process to minimize loss of business. Most people will understand your circumstances, so try your best to reach out to clients, colleagues, and customers by sending a mass email and letting them know the predicament you are in and that you are working on getting up and running as soon as possible. Make sure they know how to get in contact with you if need be.

If you are an employee and not an owner and you work in an hourly position, you may find yourself out of work for a few days while towns restore power and order. Being out of work may put your income below what you planned for the month. The loss of income can easily lead someone into deep debt. Look into unemployment options and talk to your employer about when they plan to reopen and when you can get back to work. If you were affected by the storm you may be able to collect federal disaster unemployment compensation. Call 1-888-209-8124 to find out more information and see if you apply.

Having a plan of action can mean the difference between survival and loss during unexpected natural disasters. Below are agencies that can offer help if you have a business who has been affected by a hurricane. Reach out to them and find out how to help your business stay in business and even prosper during serious interruptions.

SBA Disasters Centers: SBA has disaster offices located in NY and across the country that can provide information and assistance quickly to businesses that incur damage from a natural disaster. SBA also provides low-interest disaster loans to homeowners, renters, businesses of all sizes and private, nonprofit organizations to repair or replace real estate, personal property, machinery & equipment, inventory and business assets that have been damaged or destroyed in a declared disaster.

DisasterSafety.org: Provides a step-by-step guide to swiftly and safely getting your business back on track following emergencies and natural disasters.

DisasterAssistance.gov: Provides more general information and assistance application materials for individuals seeking help following a natural disaster.

American Red Cross: Provides disaster relief intended to address immediate emergency needs and can offer translation and interpretation services to victims of the storm.

Much of managing your business’ survival during a disaster involves ensuring you are adequately prepared before a storm hits. By taking the necessary above steps, you’ll minimize the financial impact a disaster could have on your business. However, if you end up being financially hit harder than expected, consider finding out how Tayne Law Group can help get your business out of debt and back on track. Contact us today at (631) 470-8204 or info@taynelaw.com to find out more.

Share on FacebookShare on Google+Tweet about this on TwitterPin on PinterestShare on LinkedIn

Leave a Reply

Your email address will not be published.

Call Us Now to Get Started

(866) 890-7337

What People Have to Say

I just wanted to thank your entire staff at The Law Offices of Leslie H. Tayne, for helping me get out of debt. If it wasn’t for your firm, I would have never been able to resolve my $13k worth of debt in less than 3 years. Your staff did a great job, I was finally able to buy myself a brand new car without using a cosigner. I can’t tell you again how happy I am. I would recommend your services to anyone.

L.C. Client 2007-2009

I sleep like a baby at night now because of the work that you and your office have done. Rest assured that I will refer anyone I know to your office with conditions that are similarly circumstanced.

R.S. Client 2012-2014

You have been very helpful at first directing me in the right direction when I had no clue how to go about handling everything, I really appreciated all your advice and help and hope we can work something out. Thanks again for all your help and kind words, and patience.

D.M. Client 2009-2012