Does your business have a flood plan yet?

FLOODING can cause widespread devastation in Britain. This summer should have left no-one in any doubt about the validity of such a statement. Yet how many businesses continue to operate without a plan for such an emergency?

The risk of flooding is not about to go away. In the short term, forecasters have warned that the record summer rainfall has left saturated ground which will be unable to absorb heavy downpours in the autumn, should they come. Climate change experts have also highlighted how extreme weather events, including flash floods, are likely to be more frequent in the future.

It is hard to believe then that businesses would leave themselves open to financial ruin or even collapse by failing to plan for such an event. However, at Norwich Union our experience from this year's devastation and previous disasters tells us that many firms are simply unprepared.

Likewise, it is clear to us from the claims we have received and from the comments of loss adjusters that those firms with a business continuity plan have been able to cope much better in the aftermath of the floods.

A 'Business Flood Plan' does not need to be overly detailed and complicated. In fact, it can comprise of just three simple phases - risk mitigation, emergency actions and recovery actions:

Risk mitigation

A first course of action would be to check whether your business is located in an area at increased risk from flooding. This can be done online by checking the flood risk maps on the Environment Agency and Scottish Environmental Protection Agency (SEPA) websites - see links/above right. The Rivers Agency of Northern Ireland is planning to publish its own flood risk maps early next year. Additional information may also be available from whoever is responsible for your local authority flood contingency plans.

While it may not be feasible to relocate the business to a safer area, it might be possible to undertake certain actions to limit damage and improve the speed of your businesses' recovery. Such actions might include:

> Moving electrical wiring and sockets to a higher level.

> Installing more resilient flooring.

> Having a small stock of sandbags or floorboards available to block doorways and airbricks, or consider purchasing proprietary protection devices.

> Locate key stock and contents (including IT) at a higher level. Ensure data and software is backed up regularly and stored offsite - in a place which is unlikely to be affected by the same event.

Emergency actions

Here is where your 'Emergency Flood Plan' should come into play. Prepare one in advance of any incident (that means asap if you don't already have one) and ensure all staff members are aware of it and understand the part they should play.

Consider such matters as:

> Closing the business early – you don’t want staff or customers trapped there. Remember although your location may be safe, access roads may become submerged.

> Remove company vehicles to a safer location.

> If staff/customers become trapped in the premises ensure that they can be accommodated as comfortably as possible i.e. food/drink, medication is available together with a battery powered radio. Will your appointed 'first aiders' be on hand?

> Know the location of your gas/water/electricity terminals so they can be switched off when necessary.

> Obtain emergency lighting and small generators.

> Ensure sufficient company mobile phones are available so that staff and customers can phone relatives.

> If possible remove valuable/important stock and contents as well as other materials that might contaminate flood water.

> Contact customers and suppliers to appraise them of the situation and cancel deliveries etc. Keep them informed as the situation progresses.

> Keep a note of your insurance brokers' and insurance company's 'claims helpline' numbers, as well as other useful emergency phone numbers including local authorities, specialist salvage companies, gas and electricity providers, Environment Agency etc.

Recovery actions

Once a flood has occurred and the water begins to recede, firms need to have plans in place to recover their businesses as quickly as possible. As with the other 2 phases, having a written plan will assist with this.

Prepare an 'Action List' in ADVANCE to cover such measures as:

> Keeping details of your machinery and contents so that replacements can be quickly ordered.

> Organise alternative premises and/or storage facilities if required.

> Maintaining contact lists including commercial estate agencies (in case you have to relocate temporarily) as well as builders, contractors, IT specialists etc, so that reinstatement of the damage can begin.

> Keeping staff informed of the situation.

> Regularly updating your major customers and suppliers by whatever method suits the business best. An e-mail distribution list may be helpful if there is a large number of people to keep informed.

> Maintaining a log to note all the actions undertaken and expenses incurred. The latter will assist with the insurance claim, while the former can be used to judge how your plan actually worked and allow any alterations to be made to it to improve the businesses' resilience in the future

Existing 'Business Continuity Plans' should include generic emergency and recovery action lists that will most likely require very little adaptation to deal with such a situation. However, a specific 'Business Flood Plan' can be downloaded from the Environment Agency website - link above/right - for those businesses that require it.

Should Norwich Union policyholders and/or intermediaries have any specific questions concerning business continuity management, they can contact Norwich Union Risk Services by e-mail (see 'Contact Us' above) or by calling the NURS helpline on 0845 366 66 66.

We have also published a guide to 'Business Resilience', which can be downloaded from our site (link above/right), as well as various 'Hardfacts' sheets covering business continuity issues in our 'Risk Advice' section.