Header bg
  • section background

    How to Create a Small Business Disaster Recovery Plan

    Hero bg 2
    small business disaster recovery canada

    Stay prepared for any small business disaster with these steps.

    Small businesses face a host of challenges, and one of the most important is preparing for the unexpected. Natural disasters, cybersecurity breaches, and power outages can strike at any time, taking a toll on a company’s reputation and revenue. Having a disaster recovery plan in place will minimize the impact of these unexpected events and get your business back on track. In this article, we’ll go over 9 essential steps that small business owners can follow to create a solid plan that suits their business needs and protects their assets in times of emergencies.


    Need Insurance for Your Small Business?

    Get a Free Quote


    Step 1: Identify Potential Disasters

    Disasters can come in many forms, from natural disasters such as hurricanes and earthquakes to human-made hazards like cyber attacks and power outages. By identifying the potential risks and threats that your business could face, you can better prepare for them and mitigate their impact. Start by assessing the potential damage each disaster could cause and the likelihood of each occurring, then prioritize them based on their impact and likelihood.

    Step 2: Conduct a Risk Assessment

    Once you have identified potential disasters, the next step is to conduct a risk assessment for your small business. A risk assessment is a process that helps you identify and analyze potential risks and vulnerabilities that could impact your business operations. It involves evaluating the likelihood and potential consequences of each identified risk and creating a plan to manage them. Conducting a thorough risk assessment is crucial as it helps you prioritize your disaster recovery efforts and allocate your resources efficiently.


    Need Insurance for Your Small Business?

    Get a Free Quote


    Step 3: Establish Communication Protocols

    The third step is to establish communication protocols. In the event of a disaster, communication is vital to ensure that employees, customers, suppliers, and other stakeholders are informed and updated about the situation. Establishing clear communication protocols is crucial to ensure that everyone is notified promptly and has access to the information they need to respond effectively to a disaster. This can involve establishing emergency contact lists, creating alert systems, and setting up communication channels that allow for easy and efficient communication during a crisis.

    Step 4: Create a Data Backup Strategy

    The fourth step is to create a data backup strategy for your small business. Business data is essential, and losing it can have devastating consequences. Creating a data backup strategy is crucial to ensure that your business can recover critical data in the event of a disaster. Determine what data needs to be backed up and how frequently backups need to be performed. Visualize your network infrastructure and decide on how to store your backups, whether it is on-premise, through a cloud-based storage solution, or both. It is important to test your backups periodically to ensure their reliability in case of a disaster.


    Need Insurance for Your Small Business?

    Get a Free Quote


    Step 5: Identify Essential Business Functions

    The fifth step to create a small business disaster recovery plan is to identify essential business functions during a disaster. This step involves identifying the key business areas that must keep running to ensure business continuity in difficult times. These areas may include customer service, product delivery, financial operations, and more. Identifying and focusing on these essential business functions during a disaster can help ensure that the business’s core operations remain functional even during emergencies. Additionally, it helps clarify priorities and ensure resources are allocated effectively, making it easier to respond quickly to a disaster.

    Step 6: Create a Continuity Plan

    The sixth step to create a small business disaster recovery plan is to create a continuity plan. A continuity plan is a detailed document that outlines the processes and procedures to be implemented during a disaster to maintain core business operations. This plan should include information on how to accomplish essential business functions, establish critical supply chains and work processes, and restore systems and data, among other factors. A comprehensive continuity plan ensures that business operations can resume quickly after a disaster and minimize disruptions caused by the disaster.


    Need Insurance for Your Small Business?

    Get a Free Quote


    Step 7: Develop an Emergency Response Plan

    The seventh step to create a small business disaster recovery plan is to develop an emergency response plan. An emergency response plan outlines the steps that employees and stakeholders should take during an emergency to ensure everyone’s safety and minimize damages. Such an emergency response plan should include evacuation procedures, first aid measures, and a list of emergency contacts, among others. By implementing an emergency response plan, you can minimize risks and protect employees, customers, and other stakeholders during a disaster.

    Step 8: Invest in Preventative Cyber Security Measures

    The eighth step is a measure that should be planned right from the beginning. However, if yet to be implemented, protecting your organization from further cyber attacks is highly recommended. One effective measure is deploying VPN concentrators. They effectively create secure connections for remote employees accessing the company network. Encrypting data transmission and authenticating user identities are just among a VPN concentrator’s basic functions to significantly mitigate the risk of unauthorized access or data breaches. Implementing this in your business forms the fundamental basis for safeguarding your organization’s network and sensitive information.

    Employee training is another vital aspect of preventative security. Regular training sessions and updates on emerging threats should be conducted to keep employees informed and vigilant. Among them are creating strong passwords, recognizing phishing attempts, and being cautious with email attachments, which can significantly reduce the likelihood of successful cyber attacks.

    Implementing other preventative measures like robust firewalls, intrusion detection systems, and antivirus software is essential. Firewalls act as a barrier between the internal network and external threats, while intrusion detection systems monitor network traffic for suspicious activities. Antivirus software helps detect and remove malware, protecting against malicious software threats.

    By investing in these methods, organizations can significantly enhance their security posture and reduce the risk of cyber incidents.

    Step 9: Review and Update the Disaster Recovery Plan Regularly

    The ninth and last step to create a small business disaster recovery plan is to review and update it regularly. Business dynamics change, and new risks may emerge, warranting changes to your business’s disaster recovery plan. You must review and update the plan periodically to ensure it remains accurate and effective. Additionally, conducting regular testing and drills of the disaster recovery plan will help identify any gaps or weaknesses that require immediate attention.

    Having the proper insurance policy is one of the best ways to keep your small business safe. Get a free quote within five minutes and we’ll send your policy documents right to your inbox.


    APOLLO Has You Covered

    Get the protection you need in minutes with custom Business Insurance from APOLLO.

    Get a Free Quote


    Originally published April 11, 2023, updated August 25, 2023

    Back to APOLLO Magazine
    Share this article

    Get Tenant Insurance in less than a minute

    Get no-nonsense coverage that's the best value for your money. Purchase policies from your computer or phone, receive your documents instantly, and save when you buy online.

    Get a free quote

    4.7 rating

    Google Logo

    Get Tenant Insurance in less than a minute

    Get no-nonsense coverage that's the best value for your money. Purchase policies from your computer or phone, receive your documents instantly, and save when you buy online.

    Relevant articles

    tenant insurance coverage canada

    Tenant Insurance in Edmonton: Cost, Features, and FAQs

    tenant insurance vs landlord insurance canada

    APOLLO Insurance Introduces FinShore

    how to sell on amazon Canada

    Business and Insurance Requirements: How to Sell on Amazon

    how to start a contracting business

    How to Start a Contracting Business

    section background
    section background

    Getting insured is as easy as 1 - 2 - 3

    Tell us (very little) about yourself
    1

    Tell us (very little) about yourself

    Just tell us your address, your name, email and phone number. And that's it. We'll give you a price in less than a minute.

    Pay online easily and securely
    2

    Pay online easily and securely

    You can choose to pay monthly or save money by paying for the entire year in one easy payment.

    Get your documents in your inbox - instantly
    3

    Get your documents in your inbox - instantly

    As soon as you complete your purchase, you'll find your proof of insurance and policy documents waiting for you in your inbox.

    Get covered today - it couldn’t be easier

    We’ve provided more than 1,000,000 quotes to Canadians just like you. Give it a try!

    Google Logo

    Reviews

    4.7 rating

    1,683 reviews

    view all

    Across Canada

    Contact Us
    Apollo logo

    © 2024 APOLLO Insurance Solutions Ltd.

    111 Water Street, Unit 210, Vancouver, British Columbia, V6B 1A7

    APOLLO Insurance Agency Ltd. (o/a APOLLO Brokerage in the province of Ontario only) is a licensed retail brokerage, offering our clients with a comprehensive set of insurance solutions to meet their individual needs. APOLLO Insurance Agency Ltd. maintains necessary corporate licensing in provinces across Canada. Availability of products and service depends on licensing and product availability. The information that appears on this page is provided for information purposes only. Advertised products and prices are not guaranteed and vary based on insurance provider and/or insurance company's discretion and product availability.

    Transparency and Disclosure: APOLLO Insurance Agency's role is to provide you with exceptional service and the best insurance products that suit your needs. As a licensed retail brokerage, our compensation is based on a commission basis already built into your insurance premium and varies based on the product purchased through our platform. For a description of how APOLLO Insurance Agency is compensated and how this is calculated, please refer to our Compensation Disclosure document. For consumers in Ontario, please review the RIBO Conduct Fact Sheet and the RIBO Conduct Guidance document.