Continued from May 24th post…which should start the process of thinking about the most important issues that will, in turn, drive your contingency planning. Will you ever need a plan? Statistics say you will. Here’s an idea of just how frequently large scale natural disasters occur in the U.S. from the National Climatic Data Center:
- From 1980-2011 there were 112 weather-related disasters that caused $1 Billion or more in damages.
- Hurricane Irene August 20-29, 2011, was estimated to do over $7.3 Billion in total damage and brought significantly more damage to communities of the upper northeast that had not experienced something of this scale in decades.
- Twice we have seen years with over $50 Billion in catastrophe damages in just in the last decade. In fact, the pace of disasters over $1 Billion in damages is increasing.
A final thought is to remember that even if your main office/plant is relatively unaffected – you could have a work force that is displaced for an extended period of time. In today’s economy most of the value produced by companies is driven by the intellect of the employees. If they are unable to reach the office, or work from home, that may hinder your operations just as much as a destroyed piece of equipment.
If you are concerned with contingency planning for your business, contact your Flanders Group insurance agency. Our expertise will help guide you through the process of creating a Disaster Recovery Plan so your business is ready for anything that comes your way.