As a business owner, you can be sure that if disaster strikes, even as you try to recover, your business will be closely watched by multiple people. For example:
- OSHA will check to make sure you have the proper emergency signage and fire extinguishers.
- Customers They will point out contracts you may have signed promising to deliver products or services.
- employee families (and your lawyers) will want to know if you have taken reasonable steps to ensure the safety of your loved ones.
if you have shareholdersit will endure another level of scrutiny due to its fiduciary responsibility.
What will your findings be?
Of course, whether you can be found wanting or even negligent will depend on the situation.
In all cases, however, a serious lawsuit can just as surely bring the company down as disaster!
You may not be able to protect yourself from disaster. But you can take steps to protect yourself from legal consequences.
Three simple recommendations.
- Consult with your professional advisors on the topic of “emergency preparedness”. For example, have a meeting with your attorney, your insurance agent, and your human resources advisor about the issue. Understand the security statutes that apply to your particular industry; professional associations can be of help, here.
- Take advantage of internal expertise to develop a simple emergency preparedness or business continuity plan. There are many resources available to get you started, and members of your own staff are likely to have more knowledge of vital functions than anyone outside.
- take reasonable steps to protect the business by following the recommendations in your plan. These include safeguarding data (backups, redundant systems, offsite storage), having a plan to maintain essential functions (with appropriate role assignments and backup assignments to fill in for people who may not be around), and understand the needs of employees who may be separated from their families.
Yes, emergencies can happen. In the small business world, it may be safe to say that emergencies WILL happen! However, it does not mean that an emergency has to turn into a disaster.
Remember the prudent man rule.
Are you doing what a prudent person in your circumstances would be expected to know and do?
This article is not intended to provide legal advice. But if you’ve identified any potential holes in your emergency planning, now would be a good time to take steps to fill them. Following the recommendations above can protect you from being accused of negligence. More importantly, following them can protect the business from failure.
