Is Your Small Business Prepared to Handle a Natural Disaster?

Depending on where you live, your small business may be subject to a variety of natural disasters. These events can come without warning and leave devastation in their wake. On the news, you often see pictures of homes that were destroyed. But after an earthquake, tornado, flood or blizzard, small businesses often have significant damage too. Without a large corporate bank account to fall back on, small businesses need to make sure they have a disaster plan in place.

Some of the statistics for small businesses are frightening, but they may motivate you to be proactive. 30 percent of small businesses have had to close their doors for at least one day due to a natural disaster in the past five years. Many small businesses cannot handle the loss of revenue, even for a day. The most common reason for closure was a blizzard, ice storm or extreme cold, but closures due to tornado, hurricane or typhoon led to the most damage and destruction. One study showed that 43 percent of businesses that close for a natural disaster never re-open, and those that are able to open for business often close permanently within the next two years.

So what can you do to make sure that your small business doesn't become a statistic? The first step is to make sure you are insured. Talk to your independent insurance agent about what would be covered if there were to be a natural disaster. For some areas, you may need additional policies to cover damage from certain events, such as a flood or hurricane coverage.

Next, get a disaster plan in place. Make sure important files are backed up and kept in a secure location. If possible, forward calls and have a plan to keep some operations going from home or another location.

Mother Nature is not always kind, but you can be prepared for whatever she throws at you. Start by talking to your insurance agent to close whatever coverage gaps you may have.

Get the coverage you need. Call Alliance Insurance Group at (303) 279-9700 for more information on Denver business insurance.