Commercial property owners need disaster plan

The greatest recession in the nation’s history is finally showing signs of recovery in commercial real estate, with parts of North Carolina among national leaders in appreciation of apartment values in 2011. Yet nature could quickly reverse those hard-fought gains if a tornado, hurricane or other severe weather strikes.

Last year, the National Weather Service issued more than 200 tornado warnings — twice the annual average — and recorded 63 tornadoes in North Carolina. Nearly half of those struck on April 16, killing 24 people, injuring hundreds of others and destroying or damaging hundreds of homes and businesses, according to the North Carolina Department of Public Safety.

Weather experts say the key to surviving such natural disasters is proper planning. Similarly, commercial property owners and property management companies must have their own survival plans to ensure their businesses can bounce back quickly.

There are important steps business owners and property managers should take now to prepare for potential disruptions. After reviewing insurance coverage, owners should consider several important questions:

How would your business operate if its offices are damaged or destroyed by a natural disaster or other emergency?

Is there an offsite location where you can work and provide customers with services?

What are your most vital and time-sensitive business functions?

How would you preserve and have quick access to the databases, contact information and other crucial information to run your business during an emergency?

Would your employees know where or whether to report to work?

A well-designed disaster plan should address those questions and more. Getting employee input and buy-in is crucial when designing a plan as is the need to build in flexibility in order to adapt to changing circumstances.

Outlined below are a number of keys to building a good disaster-preparedness plan:

Back up critical files. They are a business’ lifeline: It is nearly impossible to reconstruct important financial information, client databases or employee records without a computer network or paper files. Make sure you have a secure, offsite facility that safely stores business information to make the recovery process more manageable.  Regularly scheduled updates are a must to ensure access to the most recent and accurate information.

Identify who is really needed in an emergency. Your plan must clearly define each employee’s role and responsibilities during an emergency. Determine who is critical to an emergency-response effort and who could better serve the company by working from home. Make sure your plan addresses getting people to your new base of operations, if needed.

Develop a communications strategy. Quick and accurate communication with key members of your emergency-response team is vital to getting your business back on its feet after a disaster. Determine how you will reach employees, families, service providers, contractors and the public during each stage of an emergency. Electrical power and landlines may be out for hours or even days hampering communications, so your plan must spell out backup options, such as cell phones.

Who will speak for your business? Many people, including possibly the media, will want to know your business’ operating status. Designate one person as the contact point for all outside inquiries. They must be kept updated on all pertinent details. Messages about your company’s status and its future must be consistent and truthful.

Protect and arrange for access to insurance information. Routinely review existing insurance policies on all business property, including company-owned vehicles, to ensure adequate and appropriate coverage. Keep those policies in a safe, offsite location and detail their use and access, including contact information, policy numbers, coverage periods and policy restrictions, in your plan.

It is critical to set up strategic partnerships before disaster strikes: Prenegotiated partnerships with key trade professionals, such as carpenters, plumbers and electricians, help ensure a swift recovery. Include contact information, location and area of expertise in your disaster plan for each trade industry partner.

With a comprehensive disaster plan in place before a disaster strikes, your business is one important step closer to surviving and recovering should one occur.

COOK is client liaison for the Charlotte and Raleigh offices of Insperity, an HR and business solutions company based in Houston.