Be Prepared with an Emergency Business Plan
Today’s Workplace Necessity

By Patricia Lawrence, Human Resources Director

As America reflects on the third-year anniversary of Sept. 11 and is almost daily reminded of the precarious times in which we live, every office from Albany to Albuquerque should have an emergency business plan. And if they don’t, they need to.

The purpose of an emergency business plan—first and foremost—is to protect human life. The second reason is to protect business property, such as client records, financial data, computer equipment and insurance records, and help ensure that operations continue as seamlessly as possible.

What to Include in an Emergency Business Plan

There are many facets to an emergency business plan, but the basics should include a designated emergency response team, an emergency hotline, a designated supplies outpost, procedures for protecting business records, adequate disaster insurance and a proposed alternate work site.

Designated Response Team

A designated response team is responsible for calling 911, communicating to employees during an emergency, directing them to safety, and handing out any supplies that might be necessary, such as water bottles or flashlights. Members of the team should possess the basic skills to respond to emergencies. Among their responsibilities, they should be CPR certified and able to organize employees during disastrous situations and, most importantly, maintain a calm demeanor during an emergency.

Emergency Hotline

If feasible, a toll-free emergency hotline should be set up to provide employees with information regarding the status of the business. The hotline should include such information as whether and when employees should report to work, how they can reach other employees and managers, and the location of the alternate work site, if one has been found and is necessary.

All contact information, especially emergency contact numbers, should be reviewed and updated on a regular basis so that if disaster does strike, employees, families and friends can be quickly and easily reached.

Supplies

In the event that employees are trapped inside a building due to a snowstorm, blackout or terrorist attack, they should know where supplies are located, especially given the possibility that members of the designated response team may be unavailable to assist. Supplies should include flashlights, batteries, dried and canned food, bottled water, blankets, fire extinguishers, first aid kits and portable radios. All supplies should be checked and replaced periodically so that food is fresh and equipment is in working order.

Companies may also want to advise employees who take medication to keep on hand at least two days’ worth of extra dosage. Employees should also consider leaving at the office an extra pair of comfortable walking shoes.

Alternate Work Site

If possible, an employer should designate an alternate work site where employees can go if the current work site has been affected by a natural or manmade disaster. Through an alternate location, the business can maintain at least some operations and peace of mind that not everything has been lost.

How to Protect Business Records

“Preserving important business records is vital,” according to the U.S. Small Business Administration (SBA). In its “Disaster Preparedness Plan for Business,” the SBA recommends that “current copies of business tax returns (two years), leases, financial data, accounting records, personnel information, marketing strategies, insurance records, inventory information, etc., should be safely stored at an off-site location.” In addition, the agency recommends that a business’ information technology department “back up computerized records daily on a diskette or tape, and also store these back-ups at an off-site location.” This is especially important since these records will be required when seeking disaster loans or grants, or both.

Disaster Insurance

On Nov. 26, 2002, the federal government passed the Terrorism Risk Insurance Act of 2002. The Society’s own terrorism risk insurance provides “for losses caused by acts of terrorism.” The government also partially reimburses losses under the formula set forth in the act. Under this formula, the government pays 90 percent of covered terrorism losses that exceed the amount of the insurance policy.

Terrorism risk insurance is now generally available through many commercial or property insurance carriers. Given the real dangers that face the country and the significant cost of terrorism—both in human lives and dollars—every employer and business should consider purchasing this type of policy.