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Preparing for Disaster
IMR, April 21, 1997
At dawn on Oct. 22, Sidney Browning, co-owner of Custom Business Forms in Stockton, Calif., found out his distributorship had been destroyed by fire. Luckily, firefighters helped the firm salvage its computer file server, and a firm specializing in file recovery retrieved most accounting files. About 90 percent of artwork files were retrieved from computer hard drives, but furniture, office equipment and computer equipment were destroyed. Browning is working to rebuild his office building, which he owned. He expects to operate out of the firm's off-site warehouse for several more months using rented furniture and computer equipment bought on a lease/purchase plan.
Although no one likes to think about the possibility of a fire or other disaster, Browning says preparation can save major headaches later. He recommends that business owners:
- Keep an inventory of equipment and furniture. Browning had a list of all major purchases stored on his computer, but minor office supplies add up. Imagine if you had to replace every stapler, trash can and bookshelf. Browning sent employees into their work areas a day after the fire and told them to make a list of everything they could remember. Experts say photos are valuable in helping you provide an accurate inventory in the event of a disaster. This also might help you quickly replace reference materials such as ad specialty catalogs and postal manuals.
- Update business property insurance regularly. This requires open communication with your insurance agent. When Browning leased $20,000 in computer equipment in late 1995, he notified his insurance agent and told him to send the leasing company a letter indicating that Custom Business Forms had adequate coverage. Browning thought the agent increased his coverage at that time. He didn't, and Browning says the leasing company will get reimbursed first. After that, he won't have enough insurance to cover everything else.
- Beware of changes in building codes. Browning's building was more than 30 years old. After the fire, asbestos was discovered in some floor tiles and will be costly to remove. Also, the new building will need to comply with Americans with Disabilities Act legislation. To do so, the building may need to be taken back to its foundation, according to Browning's contractors. If you have replacement insurance (recommended by experts), be sure it keeps pace with changing building codes and environmental regulations.
- Invest in a fireproof filing cabinet. Store vital documents, including disk back-ups of customer artwork, in that cabinet. An alternative is to do daily back-ups and take them off-site each night.
- Think now about what to do if the office becomes uninhabitable. Browning was lucky. He was able to move employees into his off-site warehouse almost immediately. The first day after the fire, the phone company forwarded phones to his secretary's home. Browning has a laptop computer, which also was helpful throughout the crisis.