The Federal Emergency Management Agency (FEMA) reports that more than 40 percent of businesses affected by a disaster do not reopen. Whether a disaster is natural, technological, or human-caused, planning ahead helps your business recover faster.
Anticipate disasters
You cannot predict every event, but you can anticipate likely threats and prepare accordingly. Reviewing common scenarios helps shape your contingency planning.
Natural disasters
- Floods
- Earthquakes
- Hurricanes
- Tornadoes
- Widespread illnesses or pandemics
Technology-related disasters
- Computer failure or malfunction
- Software malfunction
- Data breach
- Cyber attack
Human-caused disasters
- Accidents
- Intentional acts such as theft or fraud
- Acts of violence
- Terroristic acts
Access Your Business Contingency Plan
- Business continuity
- Emergency response
- Crisis communications
- Information technology
- Incident management
- Employee assistance
Questions your plan should answer
- Who is the go-to contact?
- How will we accept, fill and track orders?
- What alternatives are available if our vendors are non-operational?
- What’s the best way to secure data?
Review your contingency plan today to confirm it addresses these items so your business can regroup quickly after a disaster.
Purchase Insurance
You likely carry standard business insurance such as liability, property, and employee coverage. Keep copies of your policies in a safe, easily accessible place and read them carefully.
If you identify gaps, consider additional coverage tailored to your risks; for example, some businesses purchase specific recovery products such as Home-Based Natural Ingredient Lotion Insurance, Bed Bug Infestation Recovery Insurance, or Backhoes Insurance when exposures warrant it. For more details on preparing insurance-wise for an emergency, talk to your agent.
Seek Assistance
Where to get help
- The Small Business Administration — apply for low-rate, long-term disaster assistance through the SBA Office of Disaster Assistance.
- Your bank — discuss low-cost loan options or short-term financing with your banker.
- Insurance agent — file claims and talk through ongoing coverage needs.
- Community — neighbors, clients, and vendors can help with cleanup, rebuilding, and getting back to business.
When disaster strikes, preparation matters. If you have not implemented these steps, consider doing so now — you may be thankful you were ready.
Frequently Asked Questions
How often should I update my business contingency plan?
Update the plan at least annually and after any significant change to operations, staff, suppliers, or location.
What records should I keep available after a disaster?
Keep digital and physical copies of insurance policies, key contracts, employee contact lists, and financial records stored securely off-site.
Can I get financial help to rebuild after a disaster?
Yes. Options include SBA disaster loans, emergency bank financing, and insurance claim proceeds depending on your coverage and eligibility.
What is the first step after an incident occurs?
Ensure employee safety, assess damage, document losses, and notify your insurer and any emergency contacts listed in your contingency plan.