They’re Heeeerrrrrrree: The Wind and Hail Season

The wind and hail months are here. It’s the time of year insurance companies, property owners, and business owners dread. Historically, one half of all wind and hail losses in the U.S. outside the coastal areas occur between April 1st and June 30th. The past three years in a row have been particularly painful across middle America. Oklahoma, Arkansas, Kansas, and Nebraska are on multiple year destructive weather streaks. And the South and Mid Central U.S. have seen some of the worst tornado activity ever in the past three years. In addition to disciplined regular prayer, here are two things business owners should do in preparation for the wind and hail season.

First, reassess your property insurance coverages. Do you have loss of business income insurance with extra expense, as well as extended loss of business income insurance? The latter is particularly important for any community owner in the wind or forest fire states. Are your buildings and contents insured to their true replacement cost? Many people grossly underestimate their true replacement costs. Do you own a utility system, utility poles, fences, signs, or maintenance buildings? If so, add them to your covered property schedule. Losing one or two small items to a fire or wind gust isn’t so devastating. But losing all of them at once is typically a “bankruptcy” event.

Second, if you haven’t already, take time now to prepare your own Disaster Recovery Plan. My company has done this. If we have an emergency, it will be the most valuable asset I own at the time. Here are some of the key elements that should be in your Plan:

1. Employee contact numbers and a meeting plan. Have a shared list for all employee phone numbers. Remember that in the event of a widespread disaster, land lines will most likely be down, cell towers overloaded, and gas will be scarce. Texting may be the best way to communicate. Assign each employee a buddy they can reach – preferably someone who lives close to them. That way if you can reach one of them, they can hopefully reach the other. And have a pre-described time and place to meet post disaster presuming all communications are down;
2. Know how to forward calls, faxes, and email communications to an alternative location. You’ll need to know your phone and data carrier’s contact information and the process for doing so. All tasks should be assigned to a particular person;
3. Have a “Key Contacts” list prepared that includes your insurance company’s(ies’) and agent’s (s’) phone numbers as well as your policy numbers. You also want to include your utility companies (water, sewer, electricity, phone, internet, cable…) and your account numbers for each. Being first in line for repair services due to a quick contact is much better than being 103,434th in line. Fire and Police Department contact information should be included. Key business suppliers need to be added. Finally, include the contact information of key contractors that can help you start with repairs sooner. Your computer and phone system servicers should be at the top of the list; and
4. Name and plan for a temporary work location. A location some 50 plus miles away is best in the event of a widespread disaster such as a hurricane or nuclear blast.

We learned some of these tricks after our headquarters was hit by Hurricane Ike. Experience is a great teacher, but I promise that learning these things via a business article is a lot better way to do so.

Statistics from the National Association of Small Businesses reveal that absent proper insurance and disaster planning, four out of five small businesses hit by a disaster don’t survive. If your business is worth protecting, now is the time to prepare for any future disasters. Set aside a half a day in the next few weeks and prepare for a disaster that might hit you. It could very well save your business.

Kurt D. Kelley President Mobile Insurance Kurt@mobileagency.com