Economic Preparedness Guide for Businesses

Use this guide to help your business prepare for economic shocks following a disaster event. This guide can be used from start to finish by following each step, or you can refer to a specific section that is most relevant to your business situation.

In this guide

• Introduction
• Step 1: Gather information
• Step 2: Strengthen your team
• Step 3: Review insurance coverage
• Step 4: Prepare to activate emergency plans
• Need help

Introduction

The economic preparedness guide supports businesses (and those who advise them) in strengthening their readiness for economic disruption. It complements broader emergency preparedness efforts and is tailored for use in small to mid-sized businesses.

Step 1: Gather information

Gathering the right information helps you plan, spot gaps, and respond better during a crisis.

• Use a planning tool such as the PreparedBC Small Business Guide, Business Development Bank of Canada Business Continuity, Red Cross Ready Rating™ templates
• Conduct a business inventory to document key assets, equipment, inventory
• Identify critical operations that must continue during a disruption (e.g. payroll, utility payments, etc)
• Know your team by listing staff roles, emergency contacts, and any community emergency responsibilities
• Assess your financial position to understand cash flow and emergency funds
• Document key contacts including suppliers, clients, insurance providers, and service partners
• Store important documents like insurance policies, continuity plans, vendor contacts, and payroll records in a secure, cloud-based system
• Ensure backups are performed regularly and stored offsite or online
• Keep printed contacts and procedures available for power or internet outages

Step 2: Strengthen your team

Strong connections help your business act quickly when disruptions hit.

• Identify internal leaders to guide continuity and recovery
• Clarify staff roles and any emergency responsibilities
• Assign backups for key functions like finance and communications
• Provide key staff with tools, data access, and recovery training
• Connect with local support such as chambers, Community Futures, and local government
• Join preparedness events, planning sessions, and workshops
• Share your plan and gather feedback from business networks
• Build informal partnerships with nearby businesses for mutual support

Step 3: Review insurance coverage

Insurance is one of the best ways to protect your business. The right coverage can reduce risk, protect assets, and speed up recovery. Reviewing your policy with your provider helps ensure you're ready to respond and bounce back after a disaster.

Use these questions to guide your conversation and make sure your coverage supports a smooth recovery:

• What events does my policy cover? Does it include wildfire, flood, overland water, earthquake? 
• What losses are covered under my policy? Does it include:
  • Business interruption or income loss?
  • Equipment and inventory replacement?
  • Debris removal and site cleanup?
  • Temporary relocation or operating from an alternative location?
• What is excluded from my coverage? Are there specific events or types of damage that are not covered?
• What is my deductible, and how does it apply in different disaster scenarios?
• What documentation will I need to provide to make a claim after a disaster?
• How quickly can I expect a claim to be processed after an emergency?
• Are there any steps I can take now to reduce my premiums or improve my coverage?
• Does my policy cover data loss, if relevant to my operations?
• If I lease my space, what is my responsibility versus my landlord's in terms of insurance?
• How often should I review or update my policy to reflect changes in my business operations?

Step 4: Prepare to activate emergency plans

Clear activation protocols enable timely, effective response to disruptions.

• Monitor local alerts and stay informed about evacuation orders that affect operations
• Set activation triggers to determine when to launch your continuity plan (e.g., supply chain disruption, staff shortages, evacuation)
• Communicate early and clearly to keep staff and customers informed during disruptions
• Use a response checklist that includes securing inventory, backing up data, and contacting insurers
• Review your plan regularly and update it annually or after major changes
• Run practice drills to test your plan with your team
• Keep contact info current by updating staff, supplier, and insurance details
• Apply lessons learned to improve your plan based on past disruptions

Need some help?

Contact us with questions or feedback. We're here to help!

Send an email to:  EconomicRecovery@gov.bc.ca