When hurricane season is around the corner, the best thing you can do for your business is to prepare. Fortunately, hurricanes and tropical storms never come unannounced. There’s usually adequate time to craft a mitigation and response plan. In this article we will tackle how to protect your business from a hurricane and learn the complete hurricane preparedness guide for businesses.
In general, businesses within 80 kilometers of a shoreline tend to have a greater risk of hurricane-related property damage and loss. But even if your business is more than 80 km from the coast, it’s still a good idea to take precautions. In 2024, for example, Hurricane Fiona caused extensive inland damage and flooding in Nova Scotia and Prince Edward Island.
Here are six ways to prepare your business and employees for a hurricane.
Review your insurance policies. The best time to figure out your insurance coverage is not in the wake of a major storm. Review your policies now and familiarize yourself with how to file a claim after a disaster.
Most standard property insurance policies specifically exclude floods and hurricanes. If you think your business may be at risk for storm damage, contact your insurance broker and update your policies. Ask about adding hurricane and flood riders to your commercial building policy.
In addition, consider business interruption insurance. Business interruption coverage can replace lost income if you’re forced to shut down because of a covered event.
If you have suppliers that are vulnerable to hurricanes, you may want to purchase contingent business interruption insurance. This can replace lost profits if one of your suppliers is affected by a major storm.
Establish a disaster plan and emergency contact list. Create an emergency business response and continuity plan. Your plan should include:
- Varying levels of response based on hurricane impact
- Contact information for employees, suppliers and vendors
- Evacuation routes
- Recovery measures after the storm passes
Inventory your business equipment. Create your inventory using paper, a laptop or tablet, or a smartphone app designed for taking a property inventory. Photos and videos of the interior and exterior of your property can provide useful backup when insurance adjusters are recording your losses.
Secure your building or office space. If your building has exterior glass, clear out those sections as much as possible. Cover all windows and doors, or at least those on the first floor, with shutters, plywood or paneling. Brace doorways against floodwaters with sandbags or heavy plastic sheeting and duct tape.
Unplug all electrical equipment, including refrigerators, coffee makers, calculators, fax machines, printers, copy machines, computers, phones, cable TV, etc.
Remove and secure any swinging or portable outdoor signs. Secure all loose objects that might cause damage (or be damaged) during strong winds.
Check drains, gutters, and downspouts to ensure they are clear and able to drain off heavy rain. Clogged drains could cause roof a collapse from the weight of accumulated water. Additionally, interior damage can occur if water on the roof becomes deep enough to cover vent pipes and seep inside the building.
If you have business vehicles, move them into a garage or park them as close together as possible. Remove all keys and secure them in a separate area.
Back up your data off-site. Make sure you have an updated off-site backup of all crucial business-related data. You could keep it on an external hard drive or in cloud storage. This will help preserve valuable data if your business sustains physical damage.
Protect your employees. Your employees are your biggest asset, so give them adequate time to secure their homes and make personal preparations. Encourage them to stock up on necessities and develop a personal emergency plan to protect themselves and their loved ones. Establish a messaging system to provide them with important storm-related information.
One of the most important ways to prepare your business for a hurricane is to meet with your insurance broker and review your policies. Most losses from hurricanes are due to storm surges and floods. Make sure you understand your coverage and risk exposures. Talk to your broker now and tackle how to protect your business from a hurricane and learn the complete hurricane preparedness guide for businesses.
