Hurricane Preparedness Tips For Business Owners

A message from Acadia Insurance:

This past winter and spring brought some unforeseen weather-related damage here in the Northeast.  Significant flooding in the north, tornadoes in the central region and record snowfall in southern New England caused much damage and loss.  However, one thing we can predict is the arrival of the Atlantic Hurricane Season as well as the likelihood of severe weather that comes with it.  As a result, Acadia Insurance is reminding business owners to create or revisit their pre-storm and post-storm Emergency Action Plan (EAP). 

The National Oceanic and Atmospheric Administration (NOAA) currently predicts that there is a 65 percent chance of having an above normal 2011 Atlantic hurricane season with 12 to 18 named storms, 6 to 10 hurricanes and 3 to 6 major hurricanes.

“Property planning is critical to preventing or minimizing loss during hurricane season,” said Christopher Streeter, Home Office Sr. Property Underwriting Lead, Acadia Insurance.  “Therefore, an up-to-date EAP is essential to ensuring that a company’s response procedures are organized and well thought-out during workplace emergencies.  Such formalized plans typically result in less severe injuries to employees as well as minimal business damage and loss.”

Acadia recommends taking several steps before the storm, including setting up a “Go Box” for critical papers and information such as:

• Lists of all employees, key customers and clients along with their phone numbers and addresses
• Insurance policies and agent contact information
• Electronic data back-up
• Equipment, computer software/hardware, and furniture inventories
• A list of emergency vendors, such as plumbers and restoration contractors
• Copies of essential business policies, plans, and agreements
• Photographs of the business and equipment, both inside and out

Additionally, business owners should think ahead about what they would do if their buildings were unusable after a storm.  Streeter advises owners and risk managers to know what their business interruption insurance will actually cover, including confirming whether the business will be compensated for lost income if the company has to leave its site because of disaster-related damage.  He suggests that owners should also know if there is a waiting period before the insurance coverage begins and confirm whether the policy will cover the company for more than a few days.

Business owners should also consider other pre-storm steps to help secure business property such as:

• Inspecting and making emergency repairs to drains and gutters
• Having all roof-mounted equipment such as HVAC units and exhaust vents properly strapped or anchored
• Installing windstorm shutters or plywood over windows and doors
• Having the main electrical feeds to the facility disconnected to prevent a potential fire caused by short-circuiting of damaged equipment
• Taking steps so that outdoor items will not blow away or cause damage.
• Removing all loose debris
• Anchoring or relocating all nonessential equipment to a safe indoor location
• Securing storage of flammable liquid drums, or move them to a sheltered area
• Anchoring all portable buildings to the ground
• Securing large cranes and other heavy equipment
• Making sure outdoor signs are properly braced

Finally, after the storm has passed, Acadia recommends the following to help minimize business interruption:

• Securing the site
• Surveying the damage
• Surveying for safety hazards such as live wires, leaking gas or flammable liquids, poisonous gases, and damage to foundations or underground piping and notifying the appropriate utility companies or emergency responders of any such safety hazards
• Repairing damage to automatic sprinkler systems and getting them back in service as soon as possible
• Calling in key personnel and notifying contractors to start repairs – after ensuring that safety systems are fully implemented before work is allowed to begin.
• Beginning salvage as soon as possible to prevent further damage
• Covering broken windows and torn roof coverings immediately
• Separating damaged goods, but beware of accumulating too much combustible debris inside of a building
• Cleaning roof drains and removing debris from the roof to prevent drainage problems
• Visually checking any open bus bars, conductors and exposed insulators before restarting main electrical distribution systems.