Preventing Business Failure during Quarantines or Uncontrollable Loss of Business
What you can do to prevent issues related to Coronavirus, COVID-19, and ways to safeguard your business for the future.
As it stands currently, there aren’t many insurance coverage options for global pandemics. This means you’ll need to do your best to self-insure your business for the possibility of a dramatic decline in sales for a prolonged period. Our team strives to help businesses in all industries do their best – which is why our team put together some actions to take to ensure your business is running as healthy as possible.
Have a six-month plan and savings back-up
Nearly 40% of businesses that are interrupted due to unexpected factors outside of their control close within two months. This could be due to fire, terrorism, natural disasters, mandatory quarantines, or even reduced traffic due to mass fear. In the case of the most recent event of COVID-19, social distancing is excellent for preventing the spread of disease. Social distancing also prevents consumer traffic and could heavily reduce profits for your business. Create a reaction plan now and share these plans with your team so they know what is expected of them when changes happen to your business model. Be sure to include and train management leaders on how to react and what to do. When your team feels prepared, they’ll be able to do their jobs safer.
Do your best to reduce business debt for unexpected issues
While you should already be doing this, you need to comb through your P&L Statement. Know what the danger zone is and when it’s more costly to stay open versus temporarily closing. Many businesses go further into debt, trying to win a losing battle and end up not being able to reopen when the smoke clears. The government will often try to reduce the impact a mass shutdown has on small businesses through low-interest loans. Be cautious about these as you will need to pay them back, often when you’re still trying to recover. Try to reduce costs where you can now and store the extra for a rainy day. Reducing the amount of debt your company is in will protect your business from closing if sales drop for an extended period. This, combined with a savings back-up, will give you peace of mind – which will help you make better business decisions.
Put into place a remote working strategy if possible
If you run a business that could work remotely, work remotely. Remote work tools are becoming more widely available and affordable for small businesses – software like Webex, Zoom, Slack, Google Hangouts, and more can help keep productivity going even when your workers can’t make it into the office. If you can’t work entirely remotely, try to reduce the amount of time your staff is interacting with the public as much as possible and put into place aggressive sanitation protocols.
Help employees practice good hygiene habits
This should always be a priority, but when an outbreak is making headlines you want to review and enforce strict protocols to protect your customers and staff. Don’t force sick workers to come to work, and require staff to be cleanly. Consider purchasing hand sanitizer and gloves for your team when applicable. If you run a consumer-facing business, promote your business as taking precautions early and often. The worst thing you could do in a customer-facing industry is pretend nothing is happening.
If you take these measures seriously, you’ll put yourself in the best possible place to ride out the proverbial storm. When in doubt, monitor health officials’ public statements and take their advice! The best possible thing for you to do is avoid going deep into debt, ensure you have a plan, and do everything in your power to make sure your team and your customers stay healthy.
We know this is a trying and worrisome time for everyone, so our team is here to help you walk through this. If you’re looking to insure your business for other possible risks, our team is here to help! Give our agents a call or request a quote below.