Six Steps to Get Back to Business After a Natural Disaster

When your small business experiences a disaster or emergency, taking immediate action can mean the difference between getting back to business or closing your doors for good. The Federal Reserve Bank reports that the percentage of small businesses affected by natural disasters rose to 14% in 2021 — an increase of 50%.1 Further, 63% of small businesses closed at least temporarily after experiencing a natural disaster.2 These six steps can help businesses quickly recover.

1. Develop and implement a disaster recovery plan.
   You may not know when a disaster will strike, but that doesn’t mean you shouldn’t be prepared. A disaster recovery plan details the steps necessary to resume operations. It should include instructions for how and when to contact employees to ensure safety. Actions to protect and/or recover digital assets, as well as physical property, should also be documented. A business continuity plan that focuses on sustaining operations during an incident is also key.


2. Assess damages.
   Ensure the safety of employees at all affected locations. Contact emergency responders if needed. Distribute emergency kits with first aid supplies, non-perishable food, bottled water, flashlights and a radio.
   
   Once it’s safe to do so, assess property damage starting with the building itself. For example, a flood might ruin carpeting or damage electrical wiring. Determine whether the space can be used for business while repairs are being made. If not, consider a timeline for closure and reopening, or determine if work can be done at a backup location or remotely during repairs. It's also important to look at business vehicles, equipment, inventory, and other physical assets. Documenting the damage is important – photographs, videos, and detailed notes will help support insurance claims.


3. Report damage to your insurance company.
   You should secure insurance, including business interruption coverage, for both physical and digital assets before disaster strikes. When incidents occur, contact your insurance broker or insurance company as soon as possible. They'll walk you through how to file an insurance claim, which may include providing information over the phone or online. Keep detailed notes of each call, including the names of everyone you speak with and copies of any documents you submit. Once a claim is filed, an adjustor will come to your location to assess the damage.


4. Schedule repairs.
   Once the insurance adjustor assesses damages, you can begin cleanup and repairs. Begin the process with quotes from qualified vendors for the repairs. Assess the costs, timeline, and their availability to begin. It may also be helpful, depending on the repairs that are needed, to look at warranties and guarantees vendors offer. Your insurance company may pay for repairs directly, or they may reimburse you if you have the resources on hand to pay from cash reserves.


5. Explore emergency disaster assistance.
   Disaster assistance may be available from organizations such as the Federal Emergency Management Agency (FEMA) and the U.S. Small Business Administration (SBA). For example, the SBA offers low-interest and long-term loans designed to help businesses affected by disasters. Options include physical recovery loans to help with building repairs and economic recovery loans to assist with cash flow when businesses have been negatively impacted by disasters. FEMA also assists the SBA in responding to disaster recovery efforts.


6. Notify customers, suppliers and vendors.
   Develop a communications plan that keeps customers, employees, vendors, and the surrounding community updated. This ensures you'll have the support you need when business resumes.

Did you know that the Southeast is more likely to experience natural disasters related to climate change?3 A proactive disaster recovery plan enables businesses to get up and running again as quickly as possible.

Our banking professionals can assist with your business financial needs. If you’d like to learn more visit your local branch or call 1-888-SYNOVUS (1-888-796-6887).