Before and After the Disaster

BBB Tips on Preparing for the Worst

With the nation on heightened terrorist alert and the hurricane season in the South, business owners in many areas are reviewing their emergency plans. Even if your business is not located in a city that is the likely target of a natural or manmade disaster, it can prove helpful to plan for the unexpected.

Do you know how you would continue to do business if your facility was closed? Have you considered how your operations would be impacted if the local infrastructure (roads, electricity or water) was damaged? Are you assuming you could recover all of your losses through insurance?

The Better Business Bureau urges businesses to consider these possibilities and prepare for the unexpected:

• Identify staff who would be essential to business resumption efforts and keep a list of their phone numbers (home, work, pager, cell) and e-mail addresses that can be accessed by key employees from several locations (home, Internet, etc.).
• Know how to contact law enforcement and local offices of the American Red Cross, Federal Emergency Management Agency and other agencies that can assist during a crisis.
• Devise an emergency communications plan that outlines how your business will communicate with the news media, customers, vendors and other external publics in the wake of a catastrophe.
• Develop a business interruption plan that details actions that will minimize loss of jobs and business activity.
• Make sure employees are familiar with what to do when disaster strikes.
• Keep emergency supplies at your place of business, including flashlights with extra batteries, first aid kit, and food and water for employees and customers to use during a period of unexpected confinement.
• Contact vendors/suppliers to confirm their emergency response plan procedures. Line up alternate vendors for essential supplies and equipment. Have back-up equipment and know its availability during periods of crisis.
• Have an up-to-date inventory of your assets. Review your insurance policies to ensure that you have adequate coverage for items you cannot afford to lose. A standard policy may not cover business interruption losses.
• Keep duplicates of personnel, payroll, payables and receivables and other essential records at an off-site location. Make regular back-ups of important computer files.

BBB Tips on Dealing With the Aftermath of Donation Scams

Within days of any natural or man-made disaster, the Better Business Bureau knows that some people will attempt to take advantage of Americans' eagerness to assist victims of the tragedy.

The BBB encourages the public to contribute to helpful causes that will assist the families and victims of any catastrophe. Donors should make certain, however, that the charity is properly registered with appropriate state government agencies, that it describes exactly what it will do to address the needs of victims, and that it is willing to provide written information about its finances and programs.

In addition to checking with the Better Business Bureau, donors should consider the following tips when giving in the wake of a tragedy or disaster:

• Be wary of appeals that are long on emotion, but short on describing what the charity will do to address the needs of victims and their families.
• If you contribute, do not give cash. Make a check or money order out to the name of the charitable organization, not to the individual collecting the donation.
• If you decide to contribute online, find out more about the charity before making a contribution and be aware of red flags. For example, some charities imitate the name and style of a well-known organization in order to confuse people. Also, when clicking on the link to "donate", look at the organization's URL in the browser window. Exercise caution if the domain name is hidden, is not familiar to you, or is not the same as the one stated in the text of the link.
• Watch out for excessive pressure for on-the-spot donations. Be wary of any request to send a "runner" to pick up your contribution.
• Do not give your credit card number or other personal information to a telephone solicitor or in response to an email solicitation. Ask the caller or sender to provide you with written information on the charity's programs and finances.
• Do not hesitate to ask for written information that describes the charity's program(s) and finances such as the charity's latest annual report and financial statements. Even newly created organizations should have some basic information available.
• Be wary of charities that are reluctant to answer reasonable questions about their operations, finances and programs. Ask how much of your gift will be used for the activity mentioned in the appeal and how much will go toward other programs and administrative and fund raising costs
• See if the charity's appeal explains what the charity intends to do with any excess contributions remaining after they have fully funded the disaster relief activities mentioned in solicitations.

Donors can obtain further advice on giving and access reports on national charities by visiting the website of the BBB Wise Giving Alliance, the national charity watchdog affiliated with the Better Business Bureau system.

This report is general in nature and not intended as a reliability report on any company, service or product.