Business Strategies to Minimise Downtime Following a Hurricane

The passage of a major hurricane often creates a daunting challenge for many businesses as they try to recover.

Hurricanes, known for their destructive force, have the potential to halt business operations for days, weeks, or even longer.  These natural hazards often result in flooding; wind and water damage to buildings, equipment, and machinery; power, water and communication outages; and supply chain disruptions. In addition, workforce challenges also develop, as some employees may not be able to report to work due to injuries, damage to their homes, or have been marooned due to blocked roads and damaged vehicles. 

The consequences can be severe for businesses, and, depending on the size of the business and impact sustained, could affect their survival.  

Therefore, as hurricanes become more frequent and intense due to climate change, it is important for businesses to undertake proactive measures to reduce downtime in the aftermath of a disaster.

The US-based Federal Emergency Management Agency (FEMA) pointed out that 40 per cent of businesses cease to continue operations following major hazards, such as a hurricane.

Andrea Gordon-Martin, Assistant General Manager, Operations, JN General Insurance, says businesses that prioritise hurricane preparation are better equipped to recover.

“Preparation is key to survival. It is important that companies take proactive measures to build their resilience and minimise the impact of hurricanes and other natural disasters. This will mitigate the potentially crippling effects of prolonged downtime to safeguard their employees, protect their assets, and sustain their operations following a disaster,” said Mrs Gordon-Martin.

“Importantly, businesses should ensure that insurance policies are renewed each year. Insurance plays a crucial role in helping businesses rebound from hurricane-related downtime. Business insurance policies typically cover property damage, and loss of profits. Having insurance enable businesses to quickly access financial resources needed to repair or replace damaged property and restock inventory,” she explained.

Mrs Gordon-Martin further pointed out that establishing a comprehensive business continuity plan is essential for businesses to prepare for and mitigate the impact of a hurricane.

“Companies with a comprehensive continuity plan are better able to manage downtime, keeping essential functions operational or quickly restoring them after a disaster.”

The insurer shared the following tips for establishing a robust business continuity plan:

1. Conduct Risk Assessment: Before the start of every hurricane season, conduct a thorough assessment of the potential vulnerabilities, such as physical assets, supply chains, critical systems, and employee safety that a hurricane poses to your business. This assessment will help prioritise areas that require attention and allocation of resources.

2. Employee Support: Employees are your most important asset; therefore, they should be a priority in the recovery process especially since they may also be negatively affected by the hurricane. Employees’ wellbeing is important for a successful business recovery and the eventual resumption of operations.

3. Secure Assets: Develop strategies to protect physical assets from hurricane damage. This may include installing storm shutters, reinforcing doors, and elevating critical equipment and covering them with plastic. Also, trim overhanging tree branches to minimise damage to buildings.

4. Establish a Disaster Response Team Identify key employees from different areas of the business to form an emergency response team. Each team member must be aware of his/her specific responsibility.  Conduct a training session to ensure that the team can effectively activate the business continuity plan when the time comes.

5. Back up Data: Regularly back up data and ensure that backups are stored securely off-site or in the cloud to protect critical business data in the event of physical damage or system failures. Test the data recovery process periodically to ensure its effectiveness.

6. Identify Alternative Facilities: Identify alternative sites where critical operations can be relocated if the primary location becomes inaccessible or damaged.

7. Develop a detailed Communication Plan: Maintain up-to-date contact information for employees, customers, suppliers, and other stakeholders to facilitate effective communication before, during, and after a hurricane. Also, establish primary and alternate communication channels, including email, phone, text messages, and social media.

Since the start of the Atlantic Hurricane Season on June 1, there have been three named storms. The forecast provided by Colorado State University indicated that there will be 13 named storms, six hurricanes and two major hurricanes (categories 3–5) this season.