On average, only 40 to 60 percent of businesses recover after a disaster, according to FEMA. That is why having a disaster recovery and business continuity plan at the ready is so important. If you don’t have written plans to help you get back to business after the recent shutdown, take notes so you can draft them later.
THE NEW NORMAL
The COVID-19 pandemic is very different from a flood or fire, triggering creative adjustments to a typical recovery plan. For example, the need for safe distancing and a sanitized environment for those who must be at the workplace is completely new. Employees continuing to work from home longer may add a new twist, too.
Financial aid is common during disaster recovery, but this time it’s different. If you received a federal loan, make sure you follow the rules to the letter. Stay apprised of any new assistance packages and be prepared to apply quickly.
Identify which of your vendors could jeopardize your business and develop a contingency plan in case they are unable to deliver needed goods or services.
Chances are that some businesses may not look the same as they emerge from the COVID-19 lockdown. If your business model doesn’t seem sustainable, get creative and act quickly.
CHECK INSURANCE COVERAGE
Business interruption insurance is generally very important after a disaster. However, this time insurers have been reluctant to pay claims because company operations were interrupted due to a government-mandated shutdown of non-essential businesses, not a natural disaster. If you have insurance, stay updated on the status of your claim. If you do not have business interruption insurance, apply for coverage as soon as you are back up and running. Also, take time to refine your business recovery plan because you never know if a natural disaster could strike.