Getting Ready to Master a Disaster

Lisa Streit

Running an insurance agency means being ready to help people when they are caught in a storm. But how do you do that when that storm affects you too? It’s one thing to handle several claims in a week; it’s a whole other matter to have to deal with a barrage of them in challenging circumstances.

However, the chances of that happening seem to be increasing. The number of storms causing more than $1 billion in damage—impacting whole communities, not just a few individuals—has risen significantly over the past near-half-century. There were 27 such events between 1980 and 1988 and 28 in 2023 alone.

If your community is hit by a devastating event—a tornado, a hurricane, a flood, a wildfire or some other sudden catastrophe that impacts the whole area—your agency will be among the first places people turn to for help. How effectively you do so will not only impact their futures but yours, too, because your clients will remember how you came through for them—or otherwise.

What qualifies as a disaster? I’d suggest this definition: any natural or unnatural event that is destructive to your clients’ personal and business properties and threatens your ability to serve.

 If something like that happened, would your staff know how to react? Would you know how to access client data? Would your clients know how to reach you? Would you know where to direct clients who need food or medical supplies? Agents who help in these times of crisis are never forgotten by their clients—they’re loyal for life. A solid plan can help ensure that a disaster is your agency’s best hour, not its worst.

That means thinking through how you would respond to the greatest need in the worst of circumstances—when your personnel and logistical resources may be stretched to their limits and when those you want to help are at their most vulnerable (and likely most demanding).

A good offense is your best defense—preparing your employees, your physical office, its data and systems and your clients with procedures to implement should disaster strike. That could mean knowing how to function without power, phone and internet service and even a physical office location.

Prepare your team

For most catastrophes, serious injuries and fatalities are thankfully rare. But your team members may be impacted by the event in some way, along with everyone else. Keep in mind they have concerns for and responsibilities to their own families and loved ones. But while the entire agency might be emotionally devastated, agents and staff must still strive to do their duty, if it is at all possible.

It’s a time for all hands on deck, when team members might be expected to step beyond their typical roles to help out. For example, every team member should be trained to take claims or at least be able to visit customers and let them know that help is on the way.

Additionally, you will want to have determined some specific roles. Who decides when the plan needs to be implemented and then whose responsibility is it to ensure it is? Someone needs to be assigned to check your physical office location and determine whether it’s safe to use. If not, do you have a temporary location you can use or will everyone need to work remotely? Establish minimum expectations for team members’ availability.

Have all this clearly documented somewhere and refresh team members’ memories about it regularly. Be sure to keep all your team members’ contact information up to date and be clear what your preferred communication channels will be.

Prepare your office

While some disasters fall literally out of the blue, chances are you will get at least some warning that bad weather is on the way. In that case, look for ways to minimize the potential damage just as you would for your home. Put up shutters or cover windows, sandbag doorways to keep water out and move equipment to interior parts of the office.

Think about what equipment, furniture or records you may even want to move to a safer location, just to be extra careful. Maybe you can find a storage unit or temporary office space within driving distance.

Be sure to have contact information for your power, phone and internet companies to hand should you need to check on service. Determine the minimum capabilities you’re going to need to be able to support customers—how many servers, computers, phones, lights and printers. You may also want to invest in a portable generator for backup power—and if you do, be sure to test it regularly.

Have a stash of emergency supplies on site, including flashlights and batteries, chargers, first aid, blankets, rain gear, bottled water and nonperishable food items.

Make sure your laptops and/or tablets have wireless access. Laptops should have the most updated agency management system and operating system updates installed. Load them with your latest non-web (or “cloud”)-based data files for instant access. Be careful that security precautions are taken to protect your data and ensure its integrity. Back-up this information regularly on a USB or external hard drive if your carrier allows this.

Prepare your carriers

Agency principals should work with carriers in advance to establish protocols for the claims process and document this information for staff. Make sure you keep an updated list of your carriers, including contact information and the type of assistance provided, and maintain the inventory as part of your disaster plan.

Take some time to be sure you are familiar with different carriers’ standardized processes for transmission of claims reports during a catastrophic event, from the adjuster in the field to the examiner in the office. This will help ensure claims are expedited and you can keep your client informed about progress.

Prepare your clients

Talk about a possible disaster with your clients—not to make them anxious but to make them confident that you have a plan in place should the worst happen. This conversation should start when a client first buys a policy and then be revisited during an annual coverage review. In addition, include some disaster preparedness tips on your website (such as emergency contact details) and explain how your clients can work with you during a major event.

Let customers know that your agency and carriers will be on the job, even if response times are slow—and caution that they likely will be slow. Consider a scripted text or email message or voice mail to help you handle a deluge of inquiries: Let clients know you are there for them and help will be on the way just as soon as possible.

Don’t just come up with a plan and then tuck it away somewhere. Remind your team members of it and view it on a regular basis and update it where needed. Make sure the final document is easy to find by everyone on the staff from any location. A good disaster plan allows you to focus on recovery and service, not searching for critical data or piecing together tools to work, so that, should the worst happen, you can be at your best.