Tampa, Fla. (Aug. 3, 2011) - During the first half of 2011, the U.S. experienced some of the worst tornadoes, wildfires and flooding in its history demonstrating the importance of a business continuity plan, according to the Insurance Institute for Business & Home Safety (IBHS). http://www.disastersafety.org/
Before April's disasters struck, between 6,000 and 8,000 small businesses in Alabama, Tennessee, Mississippi and Georgia were expected to close in 2011, according to a report by Dun & Bradstreet. After the tornadoes, the research company increased its forecast to at least 10,000 small businesses.
"Small business owners may find it difficult to find the time to devote to planning ahead for a disaster that may never strike," said Diana McClure, business resiliency program manager at IBHS. "But the alternative is losing the business should a disaster strike for which the business is unprepared."
One in four small businesses that is forced to close because of a disaster never reopens. Businesses that have a business continuity plan in place -- and use it during and after disaster strikes -- typically experience less damage, loss and downtime than businesses without a plan.
A business continuity plan should at a minimum include the following measures:
A pre-identified site where the business can temporarily relocate Means to retrieve data, including employee, customer and vendor records A process for operating effectively with a smaller staff of key individuals IBHS offers "Open for Business", a free, easy-to-use program that provides small to mid-sized business owners with a tool to create a comprehensive business continuity plan. The toolkit includes valuable planning worksheets, business continuity and disaster recovery tips and risk-specific property protection information.
About IBHS
IBHS is an independent, nonprofit, scientific and educational organization supported by the property insurance industry. The organization works to reduce the social and economic effects of natural disasters and other risks to residential and commercial property by conducting research and advocating improved construction, maintenance and preparation practices.
