What the pandemic taught us about crisis preparedness

The pandemic has shown Coloradans the critical importance that small business plays in both our local and national economies. It was critical for entrepreneurs to immediately change their business models and pivot to a new way of selling their products and services overnight.  

The U.S. Small Business Administration is highlighting the resilience of America’s entrepreneurs and the renewal of the small business economy as they build back better from the economic crisis brought on by the pandemic.

Though beating the pandemic is still front and center in moving our economy forward, our nation is still vulnerable to a variety of natural disasters including wildfires, hurricanes, tornadoes, blizzards and drought. History has shown that up to 25% of businesses that close because of disaster never reopen.

All Colorado businesses should develop a workable crisis preparedness plan that takes into consideration what we learned over the last two years from the pandemic. The following are six simple business strategies a business can use for future crises.

1. Evaluate your exposure. Know your community and the types of disasters most likely to impact your business. Consider your facility’s proximity to flood plains, wildfire areas, rivers and streams, and other hazards. Of course, the COVID-19 pandemic should be the first exposure issue on the list.

2. Review your insurance coverage. Consult your insurance agent to determine whether your coverage is sufficient and what it covers. You may need separate flood insurance and determine what is or is not covered during a pandemic. Check into business interruption insurance, which helps you cover operating expenses if you’re forced to temporarily close.

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