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Information about the Kentucky State University Cooperative Extension Program
2020
# Natural Disaster Proofing My Small Business
Chris Cribbs, MA, State Specialist for Entrepreneurship
According to the National Oceanic and Atmospheric Administration, from Jan-Sept 2020, there have been 16 separate billion-dollar weather and climate
disaster events across the United States, which ties the annual record that occurred in 2017 and 2011. The
2020 year-to-date costs approach $50.0 billion, but do not yet account for Hurricane Sally, the historic Western wildfires and the Western/Central Drought and Heatwave. Sadly, 25% of businesses don't open again after a disaster. However, you may improve your odds by Natural Disaster Proofing your small business. This back-to-business self-assessment can help you to assess your risks for common hazards such as hurricanes, wildfires, flooding, or even cyberattacks.
## What types of disasters in your area can affect your business?
• Natural hazards like floods, hurricanes, tornadoes, and earthquakes.
• Health hazards such as widespread and serious illnesses like COVID 19.
- Human-caused hazards including accidents and acts of violence.
• Technology-related hazards like power outages and equipment failure.
## What can you do to prepare your business for likely disasters?
• Knowing your region and the types of disasters most likely to impact your business
• Obtaining a Hazard Vulnerability Assessment from your local emergency management agency
- Considering which hazards your facility is most likely to experience, based on proximity and past events
• Knowing your business or organization's current capacity to prepare for, respond to and recover from a disaster
• Assessing the physical capacity, supplies, equipment and human resources of your facility to resist damage during a disaster
## Natural disaster preparedness checklist for Businesses:
- Creation and dissemination of a Crisis/Emergency Business management plan
• Pre-designated shelter
- Pre-designate an Alternate site for communication and operation
Weather alert radio, walkie-talkies, and several flashlights (batteries)
- Weather alert radio, walkie-talkies, and several flashlights (batteries)
• Generator (with gallons of fuel)
- Customer Action Plan
o Informing customers of the disaster
o Informing customers of business operation plan (open and close schedule)
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• Employee Action plan
o Conduct drills with staff
o Create a plan on how to disburse information to employees
- Operation plan for payroll, benefits, and Human Resource
- Insurance protection based on the recurring natural disasters in your area
o Insurance coverage (take pictures of all of your items and save purchasing receipts)
o Deductible set aside
• Data protection
o Transition paper data into electronic data (paperless recordkeeping – taxes and financial records)
o Secure the electronic data via Cloud base
o Purchase a credible Cybersecurity
• Access to physical currency
o Set aside cash in multiple places (at workplace and home)
- Place cash in a secured mobile/secured safe
• Contact list
o Laminated sheet of paper with
• Emergency numbers
• Family numbers
• Employees numbers
• Vendor numbers
• Client numbers
• Map
o Laminated map of city, county, and state
For more information, contact Chris Cribbs at chris.cribbs@kysu.edu
## Sources
• (n.d.). Retrieved October 28, 2020, from https://www.sba.gov/business-guide/manage-your-business/prepare-emergencies
• Adam.Smith@noaa.gov. (n.d.). Billion-Dollar Weather and Climate Disasters: Time Series. Retrieved from https://www.ncdc.noaa.gov/billions/time-series
• Umair Irfan, B. (2017, December 28). Megadisasters devastated America in 2017. And they're only going to get worse. Retrieved September 09, 2020, from https://www.vox.com/energy-and-environment/2017/12/28/16795490/natural-disasters-2017-hurricanes-wildfires-heat-climate-change-cost-deaths
• Small Business Disaster Preparedness Resources.
(n.d.). Retrieved September 09, 2020, from https://core.score.org/disaster-preparedness-recovery
• Preparing for a Disaster (Taxpayers and Businesses). (n.d.). Retrieved September 09, 2020, from https://www.irs.gov/businesses/small-businesses-self-employed/preparing-for-a-disaster-taxpayers-and-businesses
• Essential Steps to Preparedness. (n.d.). Retrieved September 09, 2020, from https://www.readyrating.org/How-It-Works/Essential-Steps-to-Preparedness
- Business. (n.d.). Retrieved October 28, 2020, from https://www.ready.gov/business
