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Flood: Tips for Businesses

Preparedness

Floods can cause devastating damage. Your business continuation plan, which should include disaster recovery, is the key to the survival of your business. Preparing for a disaster of this magnitude can help you prevent your business from being washed away.

The following checklists are designed to help you prioritize procedures and limit damage to your property and business. These procedures can be incorporated directly into your business continuation plan.

Prevention

• Establish a business continuation plan (BCP). This plan should take prevention, emergency response and disaster recovery into consideration. Be prepared for a disaster before it happens.
• Coordinate an emergency response team. Assign responsibility to specific employees for advance arrangements and flood emergency response, including removal of stock and equipment.
• Practice your evacuation plan. Ensure that all employees know the safest route to high, safe ground.
• Participate in flood plain management. Many communities have a program of preventive and corrective measures for reducing future flood damage. These include zoning, subdivision, building requirements or special purpose flood plain ordinances.
• Keep a list of all vendors’ and key customers’ telephone numbers available and secured.
• Keep insurance information and contact names and numbers in a safe place. This will expedite the claim process in the event of a loss.
• Try to control the flow and direction of water around critical areas of your operation. Water should be directed underground or to areas away from the building. Your local flood control district, government association, or contractor can provide assistance with retaining walls and diverting water flow.
• Install a sump pump and have a backup available in case the main pump fails.
• Make sure window wells at ground level are watertight. Window covers that can be bolted in place are most effective in keeping water out.
• Keep emergency equipment such as portable radios and flashlights in working order. Portable, battery-powered radios are essential in an emergency. Tune into local stations and follow emergency instructions.
• Keep materials on hand that will help prevent water damage. Materials such as sandbags, plywood, plastic sheeting, and lumber can be used to protect property. Do not pile sandbags too close to the walls of the building. Wet bags can exert excess pressure on the foundation, resulting in significant structural damage.

Emergency Response

• Move valuable papers and other contents to higher elevations or remove them from the premises altogether.
• Back up computer files and store them in a watertight container off premises.
• Remove all chemicals—paints, oils, cleaners, flammable liquids, etc. Doing this will not only prevent them from causing damage to the rest of the facility but will also safeguard the health of the individuals involved in clean-up operations.
• Bring outdoor possessions inside or tie down securely to keep them from being washed away.
• Anticipate the possible impact upon suppliers and customers. Make arrangements for routing inventory and deliveries to another facility until flood waters have subsided. Stock up on high-demand items if suppliers are also susceptible to flood damage because delivery schedules may be disrupted.
• Turn off all utilities at the main power switch and close the main gas valve if evacuation is imminent. Do not touch electrical equipment unless it is in a dry area and you are standing on a piece of dry wood while wearing rubber-soled boots or shoes and rubber gloves.
• Remove electrical motors and control panels from large equipment that cannot be moved, following prescribed removal procedures and electrical safety techniques.

Recovery

• Before entering the building: Check for structural damage. Determine that all electrical hazards are controlled.
• Drain and clean basements. After the floodwaters have subsided, begin draining the basement in stages, about a third of the water volume each day. Pumping out water too quickly may cause structural damage.
• Clean damaged property. Floodwaters may have transported sewage and other hazardous materials.

Assistance

Throughout the prevention, response and recovery stages, work closely with your local governmental and disaster agencies, police and fire departments.

If you have questions about flood insurance coverage, contact your insurance agent or broker or FEMA regarding the National Flood Insurance Program.

ABOUT THIS ARTICLE

This document is advisory in nature. It is offered as a resource to be used together with your professional insurance advisors in maintaining a loss prevention program. No liability is assumed by reason of the information this document contains.

Reprinted with permission of Chubb Group of Insurance Companies.

riskVue | The webzine for risk management professionals
January 2005