Helping Businesses in Springfield, PA, Recover ROI after Property Damage Disaster
Blog Summary: SERVPRO of Media highlights several steps a business can take before and after a disaster to recover ROI in the wake of property damage.
SERVPRO of Media understands that when a business suffers a property damage disaster and needs storm, fire, or water damage restoration services, the consequences can be devastating to the building, the business’s daily activities, and the bottom line. Cleanup and restoration must be rapid and thorough for the resumption of normal business operations, a stable revenue cycle, and a return to profitability. Weathering a natural disaster or recovering from fire damage, a water intrusion, or sewage backup now shifts to the overall survival of the company. Effective management of the disaster recovery process is pivotal for a business’s success and ROI going forward.
Steps to Follow to Recover ROI After a Disaster
A solid, stable enterprise can weather a property damage disaster disrupting a day or two of normal business operations. The key to survival is a rapid cleanup and restoration that avoids a prolonged interruption of the business’s revenue cycle. Here are steps to disaster recovery that will have a positive ROI.
When Disaster Strikes
Step #1: Reach out to the insurer and inform them of the property damage disaster.
An immediate response neutralizes inertia, stimulates activity, and generates momentum in the cleanup and restoration process. Unnecessary and prolonged delays in reporting can impact claims coverage.
Disturbing the disaster site can complicate the assessment and estimating process. Document the disaster scene with photos and descriptive video. Take the initiative to protect lives, important documents, data, electronics, equipment, product, and inventory. Some commercial insurers may dispatch a rapid-response team to assess the site.
Cleanup immediately following the disaster may involve the removal of damaged inventory, merchandise, equipment, insulation, or flooring. Do not discard any of these items, which provide evidence of the severity of the disaster on the business.
Step #2: Seek assistance to overcome financial hurdles.
Assistance to weather the “financial storm” after the storm or other disaster may be available through the Small Business Administration and the Office of Disaster Assistance. Any business, large or small, located in a declared disaster area qualifies to make an application for a low-rate, long-term loan to fund recovery from property damage. The SBA recognizes that a business may sustain real economic injury and accepts applications from eligible businesses seeking relief in the form of a working capital loan.
Loan amounts, interest rates, and repayment terms are generous to subsidize the repair and replacement of machinery, inventory, and property. Additional monies above the disaster damages may be obtained for uninsured or under-insured losses to protect the property against future disasters of the same type.
Homeowners and renters can secure SBA disaster relief loans to repair or replace personal belongings and for home repairs needed as a result of the impact of the natural disaster.
Step #3: Keep the lines of communication open and flowing.
As soon as possible, provide customers, clients, and relevant vendors with a status update. Update the company’s website to reflect the status of business operations moving forward, including:
- Re-opening and business hours
Reach out across multiple channels, including texts, voice mails, and various social media platforms. Inform clients, customers, and vendors of the company’s status. Transparency in the moment of crisis demonstrates the management team, staff, and employees know how to overcome challenges that build trust with customers, clients, vendors, and fulfillment partners.
Step #4: Do not expect a rapid federal relief response.
Be aware that FEMA may be slow to deliver aid, especially if the disaster is widespread. Private insurance or an SBA loan will deliver needed capital at a faster pace than FEMA.
What to Do Before a Disaster Strikes
Preparation is the key to surviving a property damage disaster and re-engaging business operations.
Step #1: Formulate a coherent, executable backup plan.
A business continuity plan is a pathway to recovery. The business continuity plan includes the following elements:
- Preparation, planning, and drills before the disaster
- Response during the disaster, which may be several days if the culprit is a slow-moving tropical storm or hurricane
- Data backup action plan before, during, and after the disaster
- Cleanup and restoration immediately after the disaster
- Strategies to fill and track orders or provide client services
- Vendor workarounds
- Short-staff solutions such as remote work and critical-needs staffing
- Rapid funding pipelines to supply pressing needs for working capital during an interrupted revenue cycle
Consult with data recovery vendors and cloud services providers for an integrated, seamless, and secure response and recovery.
Step #2: Review and update insurance coverage.
Private sector insurance coverage is more agile and responsive than FEMA. Be aware that many policies do not cover earthquake and flood damage. A rider may be needed to cover wind damage from a hurricane or a power outage from severe weather.
Step #3: Pre-qualify a damage restoration company before a disaster strikes.
Look for these vital features:
- Rapid response within one hour
- 24/7, 365 days a year, including holidays
- Solid references and reviews
- Experienced in handling the challenges of cleanup and restoration in a commercial setting
- Licensed, bonded, insured, and possessing the industry-standard IICRC certifications
- Rapid scalability to handle any size and type of disaster
- Locally owned and operated
SERVPRO of Media provides commercial damage restoration services for Springfield, PA, businesses, both large and small. The office can be contacted by phone at (610) 566-5720 or by email at office@SERVPROmedia.com