Ninety percent of U.S. counties had a weather disaster in the decade between 2011 and 2021, according to research released in November 2022 by Rebuild by Design. Those disasters included severe storms, wildfire, flooding and landslides, and most resulted in loss of power and other serious infrastructure damage.
Have A Recovery Plan Ready
Contractors with good business continuity and disaster recovery plans are better able to weather storms and other adverse events. From the granddaddy of them all, Hurricane Katrina, which was the costliest hurricane to hit the U.S., to more run-of-the-mill events that still cause headaches for construction companies, including power outages, water and sewer flooding, wind damage and more, having a plan in place significantly expedites a contractor’s return to business.
Prepare for Challenges
Contractors face serious impediments after a local or regional disaster, such as access to cash, ability to communicate with employees, subs and project owners, and challenges to restarting once the event is over and pathways are cleared. Rich Sghiatti, Regional Vice President of Contract Surety Operations at Old Republic Surety, in an article for Construction Executive, discusses how contractors can be prepared to grapple with multiple business interruption scenarios so operations can resume after a disaster.
Expect the Unexpected
The reality is that, without a business continuity plan in place (or with a plan that’s outdated), some contractors are forced to take out an unexpected loan, file for bankruptcy or go out of business permanently. History has proven that contractors who have good continuity and disaster recovery plans fare better after a catastrophe than those who do not plan well.
Rich has some great ideas and tips to share about disaster planning, as well as some information about property/casualty insurance and how force majeure clauses could impact your coverage. Ready to learn more? Just click here for the full Construction Executive article and start on your path to sustainability.
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