5 Tips to Prepare Your Business for a Natural Disaster

5 Tips to Prepare Your Business for a Natural Disaster

Natural disasters such as floods or hurricanes can happen suddenly at any time. The loss of essential records, files, and other materials during a disaster is commonplace and cannot only add to your damage costs, but may also delay your return to normal operations.

Securing Company Documents and Equipment
To reduce your vulnerability, determine which records, files, and materials are most important; consider their vulnerability to damage during different types of disasters (such as floods, hurricanes, and earthquakes) and take steps to protect them.

ONE: Confirm your insurance: Make sure you are aware of the details of your flood insurance and other hazard insurance policies, specifically which items and contents are covered and under what conditions. Check with your insurance agent if you have questions.

TWO: Back up essential files: Regularly back up vital electronic files (such as billing and payroll records and customer lists) and keep backup copies in a secure off-site location. Important papers (plans, legal documents, etc.) should also be stored securely off-site.

THREE: Consider the location of equipment susceptible to damage: Raise computers above flood level, move heavy objects to low shelves, and secure any equipment that could move or fall during a natural disaster.

FOUR: Take inventory: For both insurance and tax purposes, you should maintain written and photographic inventories of all important materials and equipment. Estimate the cost of repairing or replacing each essential piece of equipment in your business.

FIVE: Perform regular building maintenance and repairs: Periodically evaluate the building envelope to make sure that wind and water are not able to penetrate the building.

For more information on planning for Workplace Emergencies, including additional guidelines on developing an emergency action plan to protect your employees and business during a disaster, contact your IPS Advisors consultant. 

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Information provided by HR 360, Inc. to IPS Advisors. The information and materials herein are provided for general reference purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. Federal and state laws change frequently and, as such, there is no guarantee as to the accuracy or completeness of the information featured herein. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a 'covered opinion' or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

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The information provided is for educational purposes only. This information is from sources we believe to be reliable, but we cannot guarantee or represent that it is accurate or complete. The opinions are those of the writer, and the opinions and information presented are subject to change without notice.

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