Commercial insurance companies also offer a variety of disaster insurance policies and planning services – however, normal business insurance policies do not cover flood damages.
Small business owners are strongly encouraged to make contingency plans for responding to and recovering from disasters that may befall them.
There are opportunities for program improvement following an actual incident.
A critique should be conducted to assess the response to the incident.
A disaster recovery and business continuation plan, however, has three objectives: 1) Prevent disasters from happening; 2) Provide an organized response to a disaster situation; 3) Ensure business continuity until normal business operations can be resumed."It is essential, then, that small businesses take the time and effort to construct comprehensive disaster and recovery plans if they hope to weather unwelcome interruptions in business operations in good financial and market condition.
"Some call it Crisis Management," remarked magazine.
"The fact is that the majority of private-sector management is still reluctant to allocate the necessary time, staff, or funds to prepare and plan for the possibility of a disaster that may put them out of business," according to .
Myers agreed that this tendency to give short shrift to disaster planning is a common one, observing that "when the economic climate is favorable, contingency planning is last on the list of things to do; when profits are down, contingency planning is the first item to be cut from the budget."Small business owners, then, need to make sure that they devote adequate resources to disaster preparedness and recovery planning before beginning the process.
Such coverage is valuable, but it is only of limited usefulness. Myers, author of , described disaster insurance as only one element of a comprehensive disaster contingency plan.
"The role of insurance in protecting against loss of physical assets, such as buildings and equipment, is clear," wrote Myers.