Ed Campbell arrived at the plant less than 15 minutes after the first fire truck pulled in. During the two hours it took to extinguish the flames, douse the hot spots, and vent all the smoke, the plant manager wondered what awaited him inside. Workers from the second shift milled around in the parking lot—fortunately, none of them had been injured. It would take another couple of hours before the fire inspector would identify a faulty compressor as the cause.
When Ed reached his boss, the first question was whether the plant would be able to meet its commitment to deliver the truckload of components to its auto-plant customer. If it didn’t, the customer would lose a day’s production. Ed wasn’t sure if he should call and warn the customer. He didn’t yet know the extent of the damage. He assumed there would be a substantial amount of cleanup and wondered how to do what needed to be done. The electric and gas companies had cut off service, and Ed wasn’t sure what would be involved in restoring it. Nor did he know if he should send the second shift home early.
Ed’s company had not developed an emergency restoration program plan like many businesses. They had fire alarms, extinguishers and everything needed to provide a safe exit but had not considered what it would take to reopen the plant after even a small fire—or a broken pipe, a flood, a tornado or any of a dozen other emergencies that could shut the plant down.
Restoration Plan Elements
An emergency restoration plan should consider the types of damage that could occur, the specific impacts they may have on the facility and operations, and the steps involved in recovering from the emergency. The plan should spell out who is responsible for each element and who must be contacted. When appropriate, the plan may include contingencies, such as asking another facility to step up and address a customer’s need.
In Ed’s situation, the plan might include instructions for when and how to contact that large customer, along with guidance for determining whether employees should stay at work. The program should also include training, so key employees, such as shift supervisors, know of the program’s existence and understand their roles in emergency situations.
In addition to ensuring everyone knows what to do, developing a restoration plan may help you identify steps you can take to prevent emergencies or minimize their impact. For example, you may discover that critical documents are being stored directly below plumbing that is vulnerable to failure. Finding a safer location for those documents will reduce their chances of being destroyed.
Partner with a Restoration Contractor
While having an emergency restoration plan is vital, an equally valuable step is developing an ongoing relationship with a professional restoration contractor before their help is needed. Choose one that can become more familiar with your business operations and create an emergency plan specific to your needs.
Written by Robyn Garnet, Regional Claims Advocate Leader at Hylant, a privately held insurance brokerage that offers risk management services, captive consulting and management, employee benefits brokerage and consultation, M&A and complex business transaction consultation, and loss control services. To discuss your risk management and insurance needs, contact Jack Miller (jack.miller@hylant.com), Market President, Hylant-Detroit.
