Many businesses never reopen after a disaster. These businesses cease operations. Whether your business comes face-to-face with a natural disaster, fire or biological threat, you must begin the process of planning for losses. When you plan in advance, you increase the chances of your business continuing operations and you reduce the risk of income loss. The following are steps your business should take to create a disaster recovery plan.

Establish a Communications Loop

When a disaster strikes, most businesses may not be able to rely on their existing channels of communication. Internet access and emails may not be available after a hurricane, earthquake or flood. Managers will need to rely on cell phones and older forms of communication to ensure they can communicate to their employees effectively. 

To prepare for interruptions in communications, businesses must develop a communications plan for all types of disasters. With a communications plan in place prior to a catastrophic event, the management team can review it and practice communicating with their employees so that everyone will know what to expect.

Create a Human Resource Plan

From directors to line employees, everyone plays a significant role in getting your business back on track. During a disaster, it is important that everyone continues to leverage their expertise for the betterment of the organization. By creating a human resource plan in response to a natural disaster, deploying your team becomes nearly seamless. The plan should highlight each person’s role and assign responsibilities to everyone. 

Mock runs deploying resources will help managers and directors fine tune the plan so that it takes less time to get the business up and running again.

Purchase Business Insurance

One of the most important aspects of creating a disaster recovery plan is your business insurance policies. Your business insurance is the financial backing you need to catapult your disaster recovery financially. From property insurance to commercial auto insurance, with the appropriate insurance coverage, your business can receive a check from your insurance company in a matter of days. 

Management must ensure that all key people have access to business insurance documents. Relying on one person to maintain the documents can jeopardize the business. 

Before facing a disaster, it is critical for your business to have a disaster recovery plan in place. With many businesses shutting down indefinitely after a disaster, your response is one factor that determines whether your business will return. Another factor is having the right business insurance in place. Companies that have various types of business insurance can weather various storms, including those that threaten continual operations.