Disaster recovery is about taking action to prevent or mitigate the impact of a disaster from happening again. By contrast, business continuity planning is a process that can help support an entity to continue to operate, or re-start operations, after a crisis.

For both of these, the process followed can  be dependent on whether the venue is established or new. Established hospitality businesses may need to think through their legacy issues. This can ensure the business is   resilient in the event something happens that threatens normal trading. New hospitality businesses may have an advantage in that they are not saddled with as many legacy issues and can plan for continuity in their operations during the build.

We encourage our members to engage with Xenia during the planning stages of new builds or modernisations, so Xenia’s risk managers can assist in disaster prevention and mitigation.

The approach you take may also depend on the size of your business operations. The appropriate business continuity and disaster recovery plan can be very different if you operate, say, a large group versus a small country pub. What’s important is the procedures that are followed are fit-for-purpose.

Nevertheless, some of the steps that can be taken are common to all entities regardless of size. Let’s take a look at some of the essentials. 

Steps in the business continuity process:

• Electrics and electrical goods: it may not be possible to move wiring and electrical equipment in an existing building. But when building new, it can be a good idea to consider placing switchboards at a height, so in the event of a flood, they are above the high-water mark.
• Record keeping: make sure you keep detailed records of your insurable assets, including invoices for any plant and equipment. This will help to speed up replacement time after a disaster.
• Maintenance: keep kitchen flues and gutters clean. Keeping kitchen flues clean can reduce the risk of a fire from cooking burning down the property with clean gutters reducing the risk of your business being destroyed from a bushfire.
• List of trades: have an up-to-date contact details of all the major service providers you may need in the event of a disaster. This may include builders, electricians and plumbers. This may help you to get the rebuilding process proceeding quicker.  
• Clearly defined list of responsibilities: your living business continuity plan should include details of individual responsibilities in the event of a disaster, such as contacting staff, emergency response and speaking to the media.
• Check resources to see if they are still fit-for-purpose: for instance, are sandbags still free from damage if they have been on the property for some time?

Steps in the disaster recovery process:

• The involvement of your loss adjustor can be one of the most important elements in the disaster recovery process.
• Contact Xenia as soon as an insurable event happens so your loss adjustor can help get the business back on its feet.
• The loss adjustor will be able to assess what needs to be completely replaced and what can be repaired after a disaster. For instance, carpet and chipboard that has become damaged during a flood are likely to need to be completely replaced. Whereas solid timber benchtops may just need to be cleaned and repaired, rather than replaced entirely.
• Make sure you take detailed photographs of the damage and ideally, it is useful to have photographs of the property in its entirely before an insurable event to help prove what the business looked like before the damage.
• Understand health department requirements: there may be restrictions as to when the business can re-open if the building is subject to mildew or dampness. It may be useful to understand what these are before the event.

Getting back on your feet after a crisis can be a  tough process. So, ensure you do the right planning before the event so you can re-open for trading as soon as possible.

If members would like a custom-made disaster recovery and business continuity plan, please contact Xenia for further details.

Xenia Mutual Ltd ACN 650 383 430

Important note:

This article contains information of a general nature only. This article has been prepared without taking into account your objectives, financial situations or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information.  Information in this article is subject to change.