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September 11, 2018
Episode 010

Prentice McIntosh, Vice President of risk management at Stephens Insurance, discusses steps businesses can take to prepare for risks that arise during hurricane season. These can include a storm safety plan, disaster recovery plans, business interruption coverage and contingent business interruption coverage.


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How Insurers Help Small Businesses Survive Natural Disasters

According to FEMA, almost forty percent of small businesses that close during a disaster never reopen. Prentice McIntosh, a vice-president of risk management at Stephens Insurance, shares insight on how small businesses can best protect themselves during a hurricane or other natural disaster.                           


In addition to having a hurricane preparedness plan, a small business should have specific kinds of coverage within their property coverage to help them in the event of a natural disaster. Business income coverage would pay for lost income for the period that the business is down. Business income is especially important for a single-location business, such as a retail store or a restaurant, that can’t easily move operations elsewhere.


Transit disruptions, power failures, and supply chain issues are common in the wake of hurricanes and other natural disasters. Even if your business wasn’t directly affected, your vendors and suppliers might have been. A small business can protect itself from the trickle-down effect by having contingent in business interruption coverage. It’s also a good idea to identify potential alternative suppliers.


A small business’s decision to evacuate during a natural disaster may be made on a case-by-case basis. If you stay, use customary safety measures and make sure you have critical supplies on hand, including food and water. Have a communication plan that has several ways of contacting people, including alternate emails and phone numbers, and contact information for family members your employees would likely go to in case of an emergency. Also, try to make sure your small business has a way to communicate with local authorities.

Prentice McIntosh

Hurricane Season is Here - Being Prepared is Key

The Small Business Hurricane Survival Guide

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