Owning a small business has many rewards, like freedom, independence and the chance to financially benefit from your own hard work.  But there are also major challenges, like long hours, hungry competitors, and cash-flow problems.

One of the challenges that lands squarely on the shoulders of the small business owner is risk management. Whereas larger firms have the funds to hire specialists whose sole concern is identifying and preparing for threats to the business, Arthur the accountant and Mia the mover must take on that role themselves.

Natural disasters are a type of risk that can strike a business at any time. Luckily for Arthur and Mia, business insurance often comes with loss prevention expertise offered by many insurance carriers to their clients. An agent or broker can create a disaster and recovery plan customized for any business.

Here is a list of disaster planning tips State Farm® offers for small businesses, they include:

Safety first

• Take time to plan evacuation routes and exits from your facility and mark them.
• Install proper emergency lighting and exit signs to help show the way in case of power failure.
• Designate staff “safety wardens” to guide and assist any emergency efforts, including regular drills.
• Businesses should conduct emergency training exercises with all employees as frequently as needed to reinforce proper reaction times and responses.
• Identify appropriate shelter spaces, such as a basement or storm cellar, in your facility for emergencies that may require them. If there is no basement in your building, go to the center of a small interior room on the lowest level away from windows or outside walls, such as a closet or interior hallway. Make sure spaces are kept clear of items that would limit their capacity or safety.
• For more information about emergency safety procedures, visit the Federal Emergency Management Agency (FEMA).

Secure your assets

• Contact a qualified contractor to discuss risk mitigation construction techniques for your building or office.
• As an added precaution, you may also want to research places where you could temporarily relocate your operations if disaster strikes.
• Maintain a comprehensive, up-to-date inventory of the items and equipment used in your business. Consider capturing these assets in photographs or video and securing the images and inventory files offsite.
• Institute regular backup procedures for critical software and data to help ensure your business maintains access to the digital infrastructure it needs.
• A business natural disaster plan will help get you up and running.

Following a disaster, you’ll want to resume business as quickly as possible:

• Keep a name and telephone number list of contractors or repair firms who could make emergency temporary repairs or board up windows should some of your buildings be damaged.
• Maintain a list of key suppliers, creditors, customers, and employees you need to contact about the state of your operation.
• Construct a financial plan to cover continuing payroll expenses and debt obligations.