Business owners in San Diego County do not have to worry about natural disasters as often as their counterparts in other regions of the country. Southern California is not prone to extreme weather such as hurricanes, tornadoes, and snowstorms. However, a single rainstorm in late February 2017 showed San Diego business owners the importance of preparation for natural disasters.
The unusually heavy February rainfall left nearly 2,000 residents without power, and it even prompted a rescue of more than 50 guests staying at the Premier Inns in Mission Valley, who had to be evacuated by means of rafts deployed by lifeguards across the flooded parking lot.
With the above in mind, the insurance experts at American Tri-Star San Diego share three ways business owners can prepare for natural disasters and protect their employees, capital, and company assets.
1. Plan for Disaster Recovery
Natural disasters cannot be avoided, but their destructive effects on a business can be mitigated by means of a disaster recovery plan outlining the actions that should be taken in case of emergencies. The first consideration of an effective plan should focus on the safety of all personnel. This means establishing an evacuation process and making sure all employees learn it. The plan should address personnel with special needs such as those who use wheelchairs and include an emergency communications system as well as cash reserves that can be quickly accessed. Finally, a reasonable method to protect vital company equipment should be evaluated.
2. Purchase Adequate Insurance Coverage
According to a November 2016 investigative report published by The Associated Press, more than 40 percent of companies that are not properly insured are forced to close permanently after a natural disaster. For this reason, business owners should inquire about San Diego commercial insurance policies that offer coverage for specific disasters such as earthquakes. Since company operations are often interrupted after a natural disaster, continuity coverage should also be considered. Another important aspect to think about would be coverage that offers replacement cost versus the actual cash value of business assets. If company equipment has depreciated considerably when disaster strikes, it may prove difficult to replace it with the diminished value the insurance company pays out.
3. Implement Data Security Measures
A major risk business owners face these days is related to the protection of sensitive information such as customer data, bank statements, intellectual property, and HR records. In the past, looting of company equipment and supplies used to be a major concern in the wake of a natural disaster, but identity theft and fraud are more pressing dangers these days. Thankfully, cloud computing provides an optimal solution to this concern. Business owners should migrate company information to the cloud as much as possible, and they should strongly consider moving their entire IT infrastructure so they can boot up their office from a remote location in case of a natural disaster.
The more coverage you have for your business, the more protection you’ll have in the event of a natural disaster. If your company needs umbrella insurance in San Diego, get in touch with Tri-Star Insurance today. Call 619-272-2100 to speak with a friendly representative and receive a free quote.