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Preparing for Disaster
IMR, Oct. 2, 1995
Buster Weinzierl, CFC, president of Belknap Business Forms in Westfield, N.Y., says somewhat seriously that he could become a disaster preparation and survival consultant. Some already consider Weinzierl an expert on the topic after everything he's experienced since Belknap burned to the ground April 14. Thankfully, Belknap was well insured, and managers have since secured a new building. Belknap began limited production in late September, and five new presses are scheduled to arrive about Nov. 1. Weinzierl hopes the firm will reach full capacity by year's end. Belknap also is building an office addition slated for completion early next year.
Here are some of Weinzierl's tips for making your business better prepared for disaster. The larger your company, the more important such preparation becomes.
- Hire an insurance consultant to help you structure a policy suitable for your business. A consultant is not a representative of any insurer and should not sell insurance, says Weinzierl. Once a policy is structured to meet your needs, not those of an insurance company, select insurers to bid on the policy. Belknap first brought in a consultant about nine years ago. Weinzierl sat on the board of a local hospital that had just undergone the review process, and it seemed like a good idea to him. He has a consultant review the policy every three years. Keep in mind that the consultant cannot do everything for you, he says. You must still make many decisions related to your policy, such as the amount of deductible you want.
- Ask about business continuation or business interruption insurance. In the event of a disaster, such a policy could provide for employees' salaries and other expenses. Although such a policy is practically a necessity for manufacturing firms, a small distributorship with one or two employees that easily could relocate temporarily to someone's home may not want to bear the expense of such coverage.
- Keep your policy up to date. Certainly, this means updating your insurer as you acquire significant assets, such as new equipment or a larger building. But, says Weinzierl, be sure to find out what data your insurer requires from you and how often you should provide it.
- Back up important company data often. Although Belknap had a procedure in place for storing data off-site, someone forgot to do so on the evening prior to the fire. Luckily, Belknap salvaged its data anyway. Weinzierl recommends having about one week's critical business information stored off-site. If someone forgets to back up one night's data and a disaster occurs, at least there is some historical information to go by. Belknap also has invested in an expensive multimedia safe for the new site.
- Plan ahead. Although it's impossible to work out many details before a disaster occurs, Weinzierl suggests business owners consider two things. First, he says, they should determine how to continue phone service in the event of an emergency. Call your phone company now to investigate options. Also, find a temporary location. Belknap employees answered calls in a warehouse that was not destroyed by the fire.