PG&E has warned California residents and businesses that it may shut down the power grid for as long as five days for large portions of the state when there are high-wind conditions during the dry fire season.
That’s because PG&E’s infrastructure was found to be the cause of several recent California wildfires.
PG&E has sent letters to residents and business in the Central Valley, Bay Area, Sacramento area, Foothills, Northern counties and beyond informing them that “if extreme fire danger conditions threaten a portion of the electric system serving your community, it will be necessary for us to turn off electricity in the interest of public safety.”
With the specter of multiple-day power outages, all businesses need to be prepared for keeping their operations going and preventing losses that may not be covered by insurance. For almost any business today, a loss of power for an extended period of time could destroy its ability to conduct operations.
Just think how difficult it would be if you lost access to your computers, which are the nervous system of any business today. If you have no power, your operations could be shuttered for all intents and purposes.
There a number of steps you can take to make sure your businesses is resilient and can keep functioning during power outages, especially if they last a few days:
Identify business processes that will be significantly affected
Since you have the luxury of knowing in advance that there could be a long-lasting power outage, you can take steps now to identify business processes that will be greatly inconvenienced by the power outage. These processes will differ from business to business, but once you put them all down on paper, it will be easier for you to make a plan to keep those functions going.
Create a continuity plan
Once you’ve identified those processes, you should brainstorm on how you can keep them going without your typically reliable power supply.
In order to get back to normal operations swiftly, employees should know how to respond to the power outage.
Create a step-by-step list of things, with proper designation to employees in the event of an outage. Set up emergency numbers in sight for employees to call, including your electricity supplier to get an estimate on when power may be restored.
Set up a back-up power system
To make sure you can continue operating, you should consider investing in a back-up generator. With a generator, you can continue to run critical aspects of a small business during a power outage, but they must be operated safely.
Generators need to be used with adequate ventilation to avoid risk of carbon monoxide poisoning. Never plug generators directly into power outlets, as this can injure utility workers. Never use a generator under wet conditions, and always let them cool off before refueling.
Cloud storage and MiFi
If you have not done so, you should secure a means of paperless document and file storage on the cloud. If there is a power outage and an accompanying surge, you could quickly lose your data. Plan ahead with a cloud server.
You should also prepare a system of personal wireless hotspots, or MiFi devices, so that even when the internet goes down, you can finish important tasks requiring web access, such as setting up an e-mail auto-response.
Make a survival kit
Creating an inventory of supplies for times when the power is out can help protect your employees and operations. Consider having on hand:
- Medical supplies
- Extra gas
- Portable phone batteries for devices
- Canned food
- Rope and other basic items.
The kit should be kept in an easy-to-reach place, and employees should be trained on where it is and how to use it.
And invest in business insurance
The best way to minimize the financial blow is to have the proper insurance in place. A multiple-day power outage could really crimp your income stream and, if you lose money due to your inability to operate, the typical business owner’s policy won’t cover lost revenue.
But, a business interruption policy would. These policies will reimburse you for lost revenues due to a number of events, including “service interruption” due to power outages and other utility services interruptions.
The important caveat is that the interruption was not caused by any of your own faulty equipment or wiring. But if the power company is shutting down power, any losses you incur should be a valid claim.Tags: business continuity, Leaders' Choice Insurance, risk management