I Will Survive Valuable tips on preparing for the worst-case scenario before disaster strikes your business

Earthquakes, fires, floods-disasters happen all the time.Whether man-made or from Mother Nature, unexpected catastrophes areless likely to defeat businesses that have effectivedisaster-preparedness plans in their back pockets.

While it may seem too early to worry about the worst, protectingyour business as soon as you launch it is actually the wisestcourse of action. An entrepreneur's first step, according toexperts, is to ask yourself what you would do if you couldn'toccupy your offices. How would you contact employees? How would youreach your clients? What kind of insurance coverage will you needto ensure you can do all these things?

Business-interruption insurance and records reconstruction aregood policies to look into, according to experts. Says Gary W.Eberhart, executive vice president of the National Association ofProfessional Insurance Agents in Alexandria, Virginia,"[Insurance agents] can be your partners-they can help youcome up with a plan."

And although disaster insurance coverage can be costly,especially after 9/11, a few efficient, less expensive ways canprotect your business, too. Back up all your crucial data and keepthose files off-site in a safe place. But be sure to check on them,experts say.

"Periodically retrieve those backups and make sure they arecomplete," recommends Larry Baye, director of BusinessContinuity Services at Grant Thornton LLP in New York City.

You should also make copies of important paperwork such ascustomer contracts, employee information and legal documents, andkeep those off-site as well.

Finally, you should do your homework and make sure that each ofyour outside vendors also has a disaster plan lined up.

According to Baye, "A lot of startups are dependent onoutside parties, and they really haven't done much duediligence-they never really inquire whether or not the thirdparty has any [disaster] coverage in place."

Disasters can be nightmares, but, with the right contingencyplan, your business can and will survive even the worst ofcircumstances.

Contact Sources

• Grant Thornton LLP
  (212) 542-9750, www.grantthornton.com
• National Association of Professional InsuranceAgents
  (703) 836-9340, www.pianet.com