Tampa, FL (Sep. 7, 2010) – The uptick in the number of hurricanes is a harsh reminder of the importance of having a business continuity plan, according to the Institute for Business & Home Safety (IBHS).

As meteorologists predicted, this year’s Atlantic Hurricane Season is producing a high number of hurricanes and tropical storms. Recently, Hurricane Earl, which grew to a Category 4 status, brushed up the U.S. East Coast. The center of the storm remained approximately 100 miles offshore, coming closest to North Carolina’s Outer Banks. Nevertheless Earl’s winds impacted east coast states from North Carolina up to Maine.

“Small businesses are particularly vulnerable during disasters,” said Diana McClure, IBHS’ business resiliency manager. “Statistics show that, of the small businesses that are forced to close due to a disaster, at least one in four never reopens. The reality is probably higher than that, because most statistics just cover the first two years, and some businesses hang on for two to five years before they give up.”

IBHS defines a disaster for a small to mid-sized business as that point in time after the ‘cause’ when a small business cannot provide its customers or clients with the minimum level of goods and services they need and expect, or an event that shuts down or severely disrupts delivery of products and services essential to the business and its clients.

“That event can be a natural disaster, an intentional or unintentional human-caused incident, a technological failure, pandemic flu or high absenteeism (no matter what the cause), or a product recall. ,” McClure said.  “A loss is a loss, whatever the cause. The business continuity planning process and disaster preparedness methodology are basically the same no matter what the cause of the interruption.”

The IBHS offers Open for Business®, a suite of business continuity tools designed to help a small to mid-sized business reduce the potential for loss, should disaster strike, and prepare in advance to reopen quickly should it be forced to close.

The IBHS offers the following tips to small businesses during the business continuity planning process:

Do the following:

1.       Vulnerability Assessment: Think about what might threaten your business - whether a natural, man-made or technological incident - and what the consequences might be.

2.       Mitigation: Determine what you can do ahead of time to minimize or eliminate the damage or disruption that could occur as a result of an event – to people, property (building, contents, inventory) and business operations.

3.       Emergency Response: Create procedures for effective response, i.e., plan your action steps to get through the chaos immediately following an event, including your methods of communication.

4.       Disaster Recovery:  Have procedures in place for recovery of IT systems and data.

5.       Business Continuity: Plan for resumption of your critical business functions and processes.

Don’t do the following:

1.       Do not plan in a vacuum: Build a team within the organization representing different departments/functions and take into account external factors (dependence on infrastructure, suppliers, customer base).

2.       Do not keep critical information and data in only one place: Regularly back up critical information and data and store it off-site or online.

3.       Do not forget your employees are your most important asset: Without employees who are able and willing to work at your recovery location (e.g., a branch office, rental space or at home), you will not be able to survive, remain viable, and ultimately recover.  Know ahead of time how you will handle payroll and benefits; cross-train employees so they can do more than one job; provide information to employees on disaster preparedness at home.

4.       Do not forget your supply chain: You are dependent on your “upstream” suppliers of goods and services and on your “downstream” customers who utilize the goods or services you produce.  You need to be sure they will be able to deliver what you need when you need it, and/or have alternate suppliers ready to go (at least for your most critical supplies).

5.       Do not forget to update and test your plans: A plan on a shelf does no good; employees need to be aware of what is in the plan and their respective roles.  Be sure to update your plan as employees and operations change. Through testing the plan, you will determine what is not working as expected, where gaps are, and what needs to be improved.

“Owning or managing a business leaves little time to devote to planning ahead for a disaster that may never happen,” McClure said. “But anything that disrupts operations can mean big trouble for the bottom line or competitive advantage, particularly for small and mid-sized businesses.”

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About IBHS
IBHS is an independent, nonprofit, scientific and educational organization supported by the property insurance industry. The organization works to reduce the social and economic effects of natural disasters and other risks to residential and commercial property by conducting research and advocating improved construction, maintenance and preparation practices.

On Monday, this powerful storm pummeled islands in the Caribbean tearing roofs off buildings and knocking down power lines and trees. As of Wednesday morning, Earl was a Category 3 hurricane on the Saffir-Simpson Wind Scale, with sustained winds of 125 mph.  Forecasters expect the storm to continue gaining strength as it runs parallel to the U.S. eastern seaboard, potentially affecting states from North Carolina to Maine.

Taking precautions now, before the hurricane arrives, should help reduce the amount of cleanup and repairs necessary after the storm passes. Here are some helpful measures home and business owners, who could be in the hurricane’s path, should take immediately, according to IBHS:

HOMEOWNERS:

Protect windows and doors

Keeping wind and water out is critical to home survival, and shutters are the most effective way to protect windows and doors from wind-blown debris. If you have not already installed hurricane shutters, plywood can be used as a last minute alternative to help keep wind-driven rain from soaking the interior. IBHS recommends purchasing plywood that is at least 7/16-inch thick, and preferably 5/8-inch thick for maximum protection. It is critical that plywood be properly fastened (anchor installation guidelines can be found here) to be effective and to ensure it does not become wind-blown debris during the storm.

Prepare your yard

Coming home after a storm to find lawn furniture embedded in siding or sticking out of a window is sure to ruin anyone’s day. Remove all outdoor furniture, lawn items, planters and other materials that could be picked up by high winds. Trim trees and shrubbery and remove weak branches on plants and trees.

Seal it

Use a high quality urethane-based caulk around outside wall openings such as vents, outdoor electrical outlets, garden hose bibs and locations where cables or pipes go through the wall to prevent water penetration.

BUSINESS OWNERS:

Implement business continuity plan

If you have already prepared an emergency plan in the event of a natural disaster, now is the time to put it into action. If you do not have a plan, take the following steps to help your business quickly recover from a disaster:

Verify employee, supplier and vendor contact information

Ask employees to update their contact information. This will help you check on their well being and communicate next steps for resuming normal business operations. Use the downtime before the storm hits to update your supplier and vendor contact information, as well as other important contacts, such as your bank or insurance carriers.

Prepare a recovery location

If possible, identify an alternative site for business operations should your facility be unavailable following the storm. Be sure the location is equipped with any special supplies or equipment that will be needed to continue business operations.

Secure your data

Be sure your vital records, data, and information are backed up and accessible should you not have access to your computers or network.

“Any time a hurricane is on its way, people in the potential path of that strong combination of wind and water should prepare themselves and their possessions to survive with minimal injury,” noted Julie Rochman, IBHS’ CEO and president. “The tips we are offering today are easy and essentially free, so there is no reason not to take these loss prevention actions.”

Further IBHS guidance for homeowners on storm preparation is available in its recently released publication, “Reducing Hurricane Risk: Residential” which provides strategies on how to reduce hurricane risk. The information is available electronically and in hard copy printed brochures in English and Spanish.

IBHS’ Open for Business^® program helps small to mid-sized businesses reduce the potential for loss, should disaster strike, and prepare in advance to reopen quickly should they be forced to close. This creates savings for businesses and also benefits employees and customers who rely on businesses being open. A workbook to develop a business continuity plan is available free of charge in English and Spanish.

For more IBHS hurricane property protection information, visit www.DisasterSafety.org/hurricane.

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 About the IBHS

IBHS is an independent, nonprofit, scientific and educational organization supported by the property insurance industry. The organization works to reduce the social and economic effects of natural disasters and other risks to residential and commercial property by conducting research and advocating improved construction, maintenance and preparation practices.

The number of vacant homes in the U.S. rose from 14 million in 2008, to 19 million by the first quarter of 2010, according to data from the U.S. Census Bureau.  In addition, the number of vacant commercial properties also has risen significantly in the past few years.

"Property protection measures are crucial for vacant buildings,” said Julie Rochman, IBHS president and CEO. “Even relatively minor damage, such as water intrusion, that goes undiscovered and/or unrepaired can quickly grow into a serious, much more costly disaster.”

The IBHS brochure, Is Your Home Alone? Keep It Safe When You're Not There, provides guidance on measures property owners can take to protect their vacant homes. Some of the key things homeowners should do if they know their house will be vacant include the following:

·         Keep wind and water out – make sure that tree branches are cut back 5 to 6 feet from roof and wall surfaces. Check for any signs of roof leaks and have any leaks fixed. If the home is in a hurricane prone region where debris impact protection is required for new construction, make sure that the windows and doors are protected. Be sure to secure outdoor furniture and other objects that could become damaging missiles in high wind.

·         Leave electricity on - advise the utility company of the vacancy. Ask to be notified in the event of high usage or an emergency.

·         Install exterior and interior motion or timed lighting - this will act to ward off potential animal infestation and criminal activity, and to give the appearance of occupancy.

·         Try to make the property appear occupied – this will help reduce the risks of vandalism or other crime.  Arrange for maintenance of the exterior by mowing lawns, taking care of shrubbery, and removing leaves.

For business owners, IBHS’ Steps to Protecting Vacant Commercial Propertyprovides guidance on what business owners can do to protect their vacant property. In addition to the steps listed above, IBHS recommends:

·         Advise local fire and police departments that your building is unoccupied, and provide them with keys and/or contact information in the event of an emergency.

·         Advise your premises alarm company of the vacancy, create new security codes, and update contact information.

·         Install exterior and interior motion or timed lighting, to ward off potential animal infestation and criminal activity, and to give the appearance of occupancy.

·         Change locks and/or install new tapered deadbolts if copies of exiting lock keys were given to prior tenants or vendors

·         Remove hazardous materials from the property, such as pollutants, chemicals or combustible materials to prevent explosion, leaks, seepage or contamination.

Visit www.DisasterSafety.org for more information about how to make your property more resistant to a variety of disasters, big and small.

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About the IBHS

IBHS is an independent, nonprofit, scientific and educational organization supported by the property insurance industry. The organization works to reduce the social and economic effects of natural disasters and other risks to residential and commercial property by conducting research and advocating improved construction, maintenance and preparation practices.

“It was 18 years ago today that Hurricane Andrew devastated Southeastern Florida, taking many lives and causing nearly $24 billion (2009 dollars) in damage. That was the first storm of the 1992 Hurricane Season, which should be a wake-up call for all of us that it only takes one storm to ravage our communities,” said Julie Rochman, president & CEO, IBHS. “Hurricane Danielle may or may not make landfall in the U.S. Either way it serves as an excellent reminder that residents along the Gulf Coast and Eastern Seaboard should take precautions now, before a hurricane arrives, to help reduce the amount of cleanup and repairs necessary after a storm passes.

“Historically, the majority of the most dangerous and damaging hurricanes occur between August and October,” Rochman added. “Don’t wait until a hurricane warning is issued in your area. Act now to prepare your property so that your family, home and possessions are better protected when a storm hits.”

Here are some helpful measures residents should take now, according to IBHS:

Protect windows and doors

Keeping wind and water out is critical to home survival, and shutters are the most effective way to protect windows and doors from wind-blown debris. Shutters keep wind-driven rain from soaking the home’s interior, and reduce the chance wind pressure will build up inside, looking for a way out. While plywood can be used, it should be used only as a last minute alternative and it must be properly fastened.

Prepare your yard

Coming home after a storm to find lawn furniture embedded in siding or sticking out of a window is sure to ruin anyone’s day. Remove all outdoor furniture, lawn items, planters and other materials that could be picked up by high winds. Trim trees and shrubbery and remove weak branches on plants and trees.

Seal it

Use a high quality silicone caulk around outside wall openings such as vents, outdoor electrical outlets, garden hose bibs and locations where cables or pipes go through the wall to prevent water penetration.

“Any time a hurricane is on its way, people in the potential path of that strong combination of wind and water should prepare themselves and their possessions to survive with minimal injury,” noted Rochman. The tips we are offering today are easy and essentially free, so there is no reason not to take these loss prevention actions.”

 Further IBHS guidance on storm preparation is available in its recently released publication, “Reducing Hurricane Risk: Residential” which provides homeowners with strategies on how to reduce their hurricane risk. The information is available electronically and in hard copy printed brochures in English and Spanish.

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 About the IBHS

IBHS is an independent, nonprofit, scientific and educational organization supported by the property insurance industry. The organization works to reduce the social and economic effects of natural disasters and other risks to residential and commercial property by conducting research and advocating improved construction, maintenance and preparation practices.

When Hurricane Katrina made landfall on Aug. 29, 2005, it caused an estimated $41.1 billion in insured losses across six states, and took an incalculable economic and social toll on many communities. Five years later, the recovery continues and some residents in the most severely affected states of Alabama, Louisiana and Mississippi are still struggling.

Wanda Edwards, IBHS’ director of code development, analyzed the quality of building codes in Louisiana, Alabama and Mississippi, with a particular emphasis on progress since Katrina. “Building codes along the Gulf Coast today are mostly disappointing, with only Louisiana getting high marks for taking proactive steps to adopt a statewide building code,” Edwards said.

“Five Years Later – Are We Better Prepared?” details IBHS’ analysis of pre- and post-Katrina building codes in Louisiana, Alabama and Mississippi. Key findings include:

·         Louisiana adopted a statewide code, but the state has struggled financially to staff and manage building inspection departments. Design professionals, contractors and subcontractors are still in the process of learning the new code and altering their construction practices in order to comply. Reports from code officials indicate it is a challenge to find qualified people to fill the role of inspectors.

·         Seven of Mississippi’s 82 counties are required to enforce the wind and flood requirements of the 2003 International Building Code (IBC) and 2003 International Residential Code (IRC).  In 2006, lawmakers created the Mississippi Building Code Council. After some initial progress, the push for statewide building code adoption met with significant opposition, which led to several unsuccessful legislative efforts.

·         Alabama has failed to adopt strong building codes statewide despite widespread damage from Hurricane Katrina. The limited building code requirements that do exist are governed by the Alabama Building Commission which requires state-owned buildings, hotels and motels, and movie theaters to follow the 2006 IBC. Individual cities are not prohibited from adopting modern codes, but adoption and enforcement is voluntary.  There have been numerous unsuccessful attempts in the Alabama Legislature to pass bills that would create a statewide code.

In 2009, Alabama passed a law requiring Alabama-admitted insurance companies to provide an insurance premium reduction to owners who build, rebuild or retrofit their homes in accordance with specified standards to better withstand hurricanes and other catastrophic windstorm events. Among these standards is the IBHS FORTIFIED for Safer Living^®and FORTIFIED for Existing Homes^™programs, which employ code-plus design guidelines and retrofit measures for bringing existing homes in line with modern building codes. 

Homes built to modern codes are much less likely to be damaged during a hurricane, according to an IBHS study conducted in Charlotte County, Fla., where Hurricane Charley made landfall in 2004. The results from this study show that homes built to modern, well-enforced codes were 60 percent less likely to incur hurricane-related damage than homes constructed before the codes were adopted. The study also revealed that if damage did occur, it was likely to be 42 percent less severe. Furthermore, based on the analysis of additional living expense records, the strong building code requirements in place in Florida allowed homeowners to return to their houses more quickly and likely reduced the disruption of their daily lives.

“Modern building codes have been proven time and again to result in better performance for homes and businesses,” Edwards said. “States like Alabama and Mississippi must learn from their history of repeated hurricane exposures and do more to protect their citizens.”

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About the IBHS

IBHS is an independent, nonprofit, scientific research organization supported by property insurers and reinsurers. The Institute works to reduce the social and economic effects of natural disasters and other risks to residential and commercial property by conducting research and advocating improved construction, maintenance and preparation practices. Visit www.DisasterSafety.org for more information about IBHS resources.

For sellers, the addition of properly installed disaster-resistant retrofits is a great way to differentiate their home from others on the market.  For buyers, a disaster-resistant home represents a sound investment.  “The bottom line is the buyer is getting more house for their money when they buy a home that has been properly retrofitted with disaster-resistant features,” said Julie Rochman, CEO & president of the IBHS. “A buyer is getting a house that is going to perform better during a natural disaster.”

The U.S. has experienced record snowfalls, flooding, tornadoes, wildfires and earthquakes – and that’s just in the first half of 2010. With 2010 Atlantic Hurricane Season activity predicted to be above average, the number and severity of natural disasters in the second half of the year could match, if not surpass, that from the first half.

The type of disaster-resistant retrofit(s) homeowners should make depends on the location of the home.  For example, homes in the Southeast within 50 miles of the coast should implement retrofits to make them more resilient to hurricanes; homes in the West should implement retrofits to make them more resilient to wildfires.

To help homeowners identify and learn more about several types of natural disasters where they live or may want to live, the IBHS offers a ZIP Code-based tool at DisasterSafety.org.  The tool provides a list of the natural disaster(s) that may occur in that particular area.

“Reports are that it continues to be a very difficult home sales market right now,” Rochman said.  “Sellers compete not only with other sellers but also with low-priced foreclosures. Disaster-resistant retrofits are an excellent way for a seller to get a leg up on the competition.”

Rochman urges homeowners to invest in disaster-resistant retrofits first before more cosmetic changes. “For example, all the money spent on new cabinet fronts or hardware, different colored appliances and granite countertops in a kitchen will have been totally wasted your house is severely damage or destroyed by a flood, wind storm or fire,” Rochman said. “The better value for that same money would be to invest it in things that help keep the house intact, so it is livable. Protect the structure first.”

IBHS Chief Engineer and SVP of Research Dr. Tim Reinhold recommends that homeowners in hurricane-prone regions make their roof the highest priority, followed closely by protecting and strengthening doors and windows.

In wildfire-prone areas, again Dr. Reinhold recommends starting with the roof. If the roof isn’t fire resistant all the other retrofits are relatively unimportant. After the roof, keeping embers out of vents, replacing single-pane windows with double-pane units and tempered outer panes, and vegetation control are among the most important retrofits.

IBHS’ website, DisasterSafety.org has a series of guides to help homeowners retrofit for hurricanes and wildfires as well as other information on what can be done to protect your home from damage during a severe weather event.

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About the IBHS

IBHS is an independent, nonprofit, scientific and educational organization supported by the property insurance industry. The organization works to reduce the social and economic effects of natural disasters and other risks to residential and commercial property by conducting research and advocating improved construction, maintenance and preparation practices.

After a Flood in a Residential Property:

1.       Use caution when entering a damaged building. If your property has sustained serious structural damage or if there are any doubts about its safety, contact local building officials to determine the status of your house before entering.

2.       Report downed power lines or gas leaks to the utility company. If you smell gas and can safely shut off the gas do so immediately.

3.       Keep electricity off if the house has been flooded. Never turn electricity on or off while standing in water. Rely on professionals to restore your utilities.

4.       Take reasonable steps to protect your property from further damage by boarding up broken windows and salvaging undamaged items. Disconnect all electronics and electrical equipment and move it to a dry location as soon as it is safe to do so.

5.       Begin to remove water-damaged materials immediately.

6.       Remove as much standing water as possible from inside the building.

7.       Ventilate with fans and/or dehumidifiers.

8.       Clean any framing or surfaces exposed to standing water or areas showing mold growth with a disinfectant cleaner.

9.       Acting quickly can increase the chance of salvaging usable materials, reduce the amount of rust, rot and mold that might develop, and limit the likelihood of structural problems.

10.    Replace any damaged wall board or finishes with materials that will not be damaged in a future flood.

You Can Go Home Again offers more tips on returning home after a flood.

After a Flood in a Commercial Property:

1.       Use caution when entering a damaged building. If the property has sustained serious structural damage or if there are any doubts about its safety have it inspected before you or your employees enter.

a.        If you own the building your business occupies, contact local building officials or have it inspected by structural engineers and contractors to determine its safety and the extent of the damage.

b.       If you do not own the building, work with the owner to have the building inspected. Whether or not you own the property, you are responsible for the safety of employees, customers and anyone else on the premises.

2.       If the building is not usable, you will need to find an alternative location to conduct business.

3.       Report downed power lines or gas leaks to the utility company. If you smell gas and can safely shut off the gas do so immediately.

4.       Keep electricity off if the house has been flooded. Never turn electricity on or off while standing in water. Rely on professionals to restore your utilities.

5.       Take reasonable steps to protect your property from further damage by boarding up broken windows and salvaging undamaged items. Disconnect all electronics and electrical equipment and move it to a dry location as soon as it is safe to do so.

6.       Begin to remove water-damaged materials immediately.

7.       Remove as much standing water as possible from inside the building.

8.       Ventilate with fans and/or dehumidifiers.

9.       Clean any framing or surfaces exposed to standing water or areas showing mold growth with a disinfectant cleaner.

10.    Acting quickly can increase the chance of salvaging usable materials, reduce the amount of rust, rot and mold that might develop, and limit the likelihood of structural problems.

11.    Replace any damaged wall board or finishes with materials that will not be damaged in a future flood.

12.    Once the building has been cleaned up, make sure that all utilities and safety systems, such as fire alarms and sprinkler systems, are operational before you move employees back into the building.

Getting Back to Business offers more tips for small business owners on working with insurance representatives to get back to business as safely and quickly as possible.

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About the IBHS

IBHS is an independent, nonprofit, scientific and educational organization supported by the property insurance industry. The organization works to reduce the social and economic effects of natural disasters and other risks to residential and commercial property by conducting research and advocating improved construction, maintenance and preparation practices.

Forecasters are predicting that Bonnie may dump 2 inches to 5 inches of rain on South Florida. The storm is expected to continue moving west-northwest from the Bahamas and could potentially affect the Florida Panhandle, as well as parts of Alabama, Mississippi, Louisiana, Texas and Arkansas.

Taking precautions now, before the wind-driven rains begin, should help reduce the amount of cleanup and repairs necessary after the storm passes. Here are some helpful measures residents should take now, according to IBHS:

·         Where possible, move furniture and electronic devices off the floor, particularly in basements and first floor levels; this can be done by placing furniture on blocks, and electronics on shelves or on top of furniture.

·         Roll up area rugs, and get them off the floor. This will reduce the chances of rugs getting wet and growing mold. This is particularly important if the property will be left unattended for an extended period of time and if long-term power outages are a possibility.

·         Inspect sump pumps and drains to ensure proper operation. If a sump pump has a battery backup, make sure the batteries are fresh or replace the batteries.

IBHS is an independent, nonprofit, scientific and educational organization supported by the property insurance industry. The organization works to reduce the social and economic effects of natural disasters and other risks to residential and commercial property by conducting research and advocating improved construction, maintenance and preparation practices.