Small Business & Natural Disasters

BOLTA www.boltinsurance.com SMALL BUSINESS Can Your Business Survive &The Unexpected? NATURAL DISASTERS Small Business Survival Guide There are 27,281,452 U.S. businesses 199%t Are small businesses consisting of companies of under 500 employees according to the Small Business Association 13,910,634 Businesses owned by women 7,793,425 Businesses owned by men 308,745,538 U.S. residents In 2010 *1I150%tt1t Work for small businesses 79% Of established US.companies have O paid employees 21% Of established US companies have Paid employees TYPES OF 14% BUSINESSES 18%+ Construction 12.6% 42.6% Percent change in number Repair maintennce and pers 11.5% Retail trade 9.7% from 2002-2007 All other In 2007, all 27.1 million businesses did a total of $30,181,460,789,000 Up from S22.974,655,000 in 2002 That's the combined gross domestic product of $2.2 trillion $4.0 trillion $8.9 trillion $14,9 trillion (combined) With that money, you can buy .. 36,407,069,709 iPad 2's Pa3G WF 6AGB sa29 1,131,451,201 Toyota Camrys 2011 Tovota Camry Hybrid for $26875 165,832,202 Homes Aerage price of US home is $182,000 That's equal to ... 580,089,196 American Households Medan income of 552,029 Sometimes the money STOPS! STOP What if disaster strikes your small business today? It's ALL about SURVIVAL! Does your small business have what it takes to survive? Could your business survive a ... Flood, Fire, Hurricane, Earthquake, Tsunami, Windstorm, Snowstorm, Electrical Outage, Tidal Flooding or Heat wave ΑΔΔΔ 25% Never reopen after a major disaster Disastrous Statistics Companies not able to resume operations 10 Day Operations in10 days ofa disaster are not likely to survive Window YEARS AFTER DESASTER 1YEAR LATER 2 YEARS 3 YEARS 4 YEARS SYEARS 80% 51% 75% 43% of companies close within 2 years of businesses wthout a business continuty plan tail within 3 years of disaster OF BUSINESSES NEVER REOPENED kely to go out of Small business owners invest o tremendous amount of time, money, and resources to make their ventures successfful and yet, while the importance of emergency planning may seem self evident, it may get put on the back burner in the foce of more immediate concerns. For small business owners, being prepared can mean staying in business following a disaster. -Smal Business Administration Score-Impoct On US Small Business OF Natural Manmade Dsosters What exactly is a disaster for a small business? It can result in It's a sudden, unplanned calamitous evert that crestes an inablity for an organization to provide oritical buniness functions for an undetemined period of time resuting in great damage or loss to that organition property loss, reduction of employees, or data loss costs of natural In the past two decades natural disasters in United States multiplied five times to . skyrockete $629 billion Munich Re, the world's largest reinsurance company, reported in 2004 that disaster related losses in United States were . $145 billion Up from S65 bilion in 2003 Natural disasters Can take on many forms From 1986-2005 (20 years) O Construction 47.5% Tornado damage 24.5% O Winter stormdamage - ) Terrorism damage - 7.8% 1.7% O Earthquakes & other geologic events 6.7 2.8% A Wind, Hail, Flood ) Fire 2.8% ) Civil Disorder, Water Damage, & Utility Service 10% No part of the country is 100% immune from natural disasters According to The Institute for Bsiness & Home Safety BHS each year disasters force thousands of businesses to close. Our research shows at least 25% of these do not reopen. Many that do open struggle to stay in business According to NOAA's National Climatic Data Center, between 1986 and 2006, the U.S. had. 70+ weather-related disasters Where damage costs exceeded $1 billion Top 20 states for natural disasters By number of major natural disasters TEXAS 80 IS No. 1 WITH 1. Teas- 11. Mississiopi 42 12. Ilirois - 41 13. Arkansas 4 14. West Virginia - 40 15. Washington - 4O 3Florida-59 4. New York - 55 S. Lousiana 53 6. Okahoma- SI 7. Alabama-4 . Kertucky 45 9. Pennsylvania 42 16. Virginia- 30 17. Missouri-39 18. Minnesota - 39 19. Tennessee 30 $1 million Where damage costs exceeded Between 1955-2007 Rank Date Event Less in Milliens August 2005 Huricane Katrina $41910 August 1902 Huricane Andrew $22.272 September 2001 World Trade Center, Pentagon $21.401 January 1994 Northridge, Ca earthquake $17004 October 2005 Huricane Wiima Huricane Charley $7.978 September 2004 Huricane Ivan S7.588 September 1009 Huricane Hugo S6.820 September 2005 Huricane Rita 55.809 10 September 2004 Huricane Frances $4.904 Ensurance Intormation Enstute, Hot pios Augut 2007 2009 summary of natural hazard statistics in the United States Weather Events (2000) Total Damage in millions) Extreme Temperatures Convection Lighting $43.87 mlion Cold S18014 milion S408 million Hal Flood Flash Flood $45154 milion Marine Rver Flood Coastal Storm S28L6 milion Tsunami sa1.02 million Tropical Cyclones Rip Current $25.96 mlion Tropical Storm/Hurricane s093 mon Winter Other Winter Storm $34156 million S48.80 million Ioe $1.17 blion Avalanche $10 milion Fre Weather So what does EmergencyPrepas Checklist a small business owner do? Suggestions from every disaster groupre consistent est time dsester 1. Prepare: Make a plan Know your geographie region and the natural disasters that can Plan for these events by purchasing survival andemergency electrical generators wator, and supplies * Discuss your concerns with an insurance broker who is familior witm your geographic region Back up all data. Many businesses who dlose due to natural disasters did not have and implement backupredundancy systems such as remote back up for all business and personal related data."The IRS stil requires that you file corporate and individual ta retums evenif you have been involed with a natural disaste And, if you can't find your customer fles and database many companies might as well close their doors for good Rehearse & review emergency plans with employees so that everyone knows their responsiblities in the event of an emergency. Make it clear to all employees how important their individual responsiblity is to tecompany Purchase an emergency radio and purchase and store batteries for an emergency. Make sure the bateries are fresh and your supplies are current Know the difference between different weather alerts and prepare accondingly Discuss is with family members and employees in case you are not in the area during a disaster Train one family member in first ald and CPRin case a hospital or medical center is not avalable Print contact information cards for all farmly members and give one II/: to each member and employees. Ask them to carytin their wallet. Make sure it includes all pertinent data such as contact telephone T II l i tes, back up out of area sucport numbers alergies and medications needed for family members 2. Take action Meet with family and empleyees to discuss plans and options and each person's responsiblities iin an emergency. Planning ahead of time will reduce confusion when it becomes time to act in an emergency. Decide 2 emergency meeting points right outside your home and one outside of your neighbohood Choose an out-of-area emergency contact person and let your entire family/team know who that person is In an emergency, everyone should know to contact that person in case some of you become detached from your group Know official evacuation routes ahead of when they are needed in an emergency Drive them several times yearly to familiarize yourself with the route and potential problems in evacuation EVACUATION Decide emergency evacuation route and go over that route with your family and employees Practice home and business evacuation twice yearty and ROUTE write the process down somewhere that is easily acoessible to everyone Plan ahead for pets because they will experience the orisis first hand while you are dealing with a disaster Decide in advance who is responsible for them and assign a backup person in case the assigned person cannot get to the location. Decide where they will be taken or kept, and store food and water for them. Don't forget a blanket and bowls for them. Accumulate important records, copy all records and data to redundant systems and store of-site with family friends or professional associates more than 100 mles away Prepare action plan in writing so it can be reviewed by all interested parties in a time of orisis. Include all records, account numbers, customer and supplies lists, and all important data to operate your business both post immediately and after the dust has settled Purchase the equipment you will need in the most common events. Electrical generators can make the difference between losing all perishable inventory in a food business FLOOD INSURANCE POUCY Review flood coverage and all property insurance with your 0gestions to help protect your business in the event of disaster. Install waterproof cabinets and shelving where needed which is usually at or above the water line Install computer redundancy back up software on your computer and MAKE THE BADK UP and store it off site Identify how local authorities will contacet you in an so that you know in advance what to expect from first FIRST AID KIT 3. Prepare disaster supply kit for emergency use only This emergency kit should contain the following materials 1. Flashlights with extra batteries 2. Battery-powered radio 3. Food-enough non perishable food to sustain you and your group for at least 2 days that does not need refrigeration preparation cooking or requires little or no washing Following items are suggested Ready-to-eat canned meats, tfruits, vegetables. canned juices and high-energy foods such as grandla bars energy bars and fruit bars 4. Water - Keep one gallon of water available for each family member, or more if you or someone is on medications that reure water or may increase thirst. Store water in plastic containers S. Medications-Include non prescription medications such as pain killers, stomach remedies and any other over-the-counter medications you use on a regular basis. These should be stored in a water tight case. 6. Presoription medications-Consult your physician on which medications you should keep in a water- and air-tight case. You should reqularly recycle those medications by using them before their expiration date and then replacing them with treshly dated medications 7. First ald supplies should include various ges bandages sterile dressings, germicidal wipes, antiseptic wipes, adhesive tape. antbacterial ontment cold pack, soissors tweezers C CPR breathing barier and bum ointment. 8. Emergeney 'space barket-mylar S. Paper plates and cups plastic utensis napkins and paper towels 10. Non-electrie can opener 11. Swiss-style multi knife-non-rusting type for various uses Make sure to use alcohol to sterilize it after use. 12. Personal hygiene products including toothbrush, soap comb brush, contact lens supplies and feminine supplies 13. Plastic garbage bags and ties for personal sanitation use 14. Plastic rain gear and gloves 15. Rain and fiood boots 16. Change of clothes for each family member including footwear a long-sleeved shirt and long pants, as well as closed-toe shoes and boots 17. Second pair of eyeglasses or contact lens Do not include candles weapons toxic chemicals, or controlled drugs unless prescribed by a doctor. 4. Business continuity plan A Business Continulity Plan identifies the company's exposures to internal and external threats and helps work out systems to effectively keep the business operating in time of orisis A business continuity plan is working out how to stay in business in the event of a disaster Typicaly this can include fire earthquakes flooding ete. A good plan addresses gaps in company infrastructure and how to deal with various events that may occur during a oris A BCP is constantly relling and evolving and has it's own planning ife cycle Natural Disaster Quick Reference Impact Loss Prepare P-Property B-Business Continuity Plan 2- Minimal-Moderate H-Health & Wettare Maderate Strong E- Employees E-Emergency K R-Rehearsats 4- Strong-Serious D-Data Backue A-Arnual Review & Loss Property Employees Business records Inventory Sales 1. Solution design 2. Implementation 3. Testing & acceptance 4. Maintenance Seek help – Don't go it alone 1 'Itis suggested that you utlize the professional experience of an attorney, acountont, and insurance broker who are trained professionols ond ore experts who con help you recognize particular risks in relotion to their speciality and con help you implement your plans through personalized and customized solutions that fit your specific needs ond budget. DISASTER CODE CHART Disaster Seasons Reglonal Imeact Less Prepare 4-5 PHERIS BERDA 0) Huricane 23 3-5 PHERIS BERDA 3-5 PHERIS BERDA Ex Winter storms 341 2-5 PHERIS BERDA 234 2-3 HERIS BERDA 4) Electrical outage 1234 HERIS 4-5 BERDA 3-5 PHERIS BERDA 1234 3-5 PHERIS BERDA TORNADOES Rating Methodology A tornado is a violently rotating column of ar extending from the base of a thunderstorm Fujita Scale FO- Weak F5- Strong downward to the ground. • Tornados are measured on the Fujita Scale Disaster Losses between FO-Weak to Personal & Business Serious Events e of destr strong, well made Human injury or death Destruction of personal property Possible Injury and Loss OF Lie - Reopening of business questionable structures. Destruction of Possible Outcomes business prope -Construction damage to buildings * Property loss, both structure and other real Prepare property Loss of electricity Damage or loss of inventory & equipment Regions All continental US Data Loss-paper and computer records Less category business financial& inventory records PHERIS Inventory-spolage or destruction Impact -Damage or loss of business customer & supplier database Welfare -injury or Seasons Depending upon geographic areas death Know the Signs Revenue-loss of sales and profit during event and recovery time -Strong persistent rotation inthe cloud base Action Steps after event. Whiring dust or debris on the ground under a area in a larger, heavily Hal or heavy rain folowed by dead clm or a fast intense wind sht - If vou are not able to building Move to an interion Public Announcements At night SmallL bright blue-green to white fashes at ground level near a thunderstorm this away from doors Listen to weather radio in your region or to NDAA Weather roofs Radio are being snapped by a strong weather forgel Never try to outrun a tornado on foot or in a car or truck, Leave the Tornado Watch When weather conditions oecur that would allow development of a tornado, a thunderstorm or tornado watch" is issued •Sky immediate sher If caught outside, lie lat in a ditch or road depression and cover your head with your Clouds move by rapidy which indicates strong Tornado Warning Tornado has been sighted or indicated by weather radar I Tomado Watch is issued move into a designated safety area as soon as possible winds Oebris faling from sky hands Viewof afunnel dloud that hasn't touched ground yet BOLT Copyright 2011 Business Ouners Liability Team, LLC. 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