SELF IMPROVEMENT

Many times, especially here in the Northeast, you don’t think you will experience a hurricane,” says Evangeline Gomez, an attorney with Fahy Choi, which focuses on family law, small-business and nonprofit law. “It’s important to have a full understanding of your liability and what precautions you need to take to minimize the risk of exposing yourself.” As Hurricane Irene hits the East Coast, small-business owners should prepare for damage just like drivers, pedestrians or homeowners. Gomez explains how business owners can best protect themselves in a situation such as a hurricane: Be sure to have a hard copy and backup files available for policies, including insurance, certificates of incorporation, mortgage documents and commercial leases. one copy should be with the business owner or someone designated to be responsible for them, and another copy should be in a safe deposit box, Gomez says. Review insurance policies. if there is something a business owner does not understand, an item missing or incorrect provision, call your insurance company to get it rectified. “Many times you have small-business owners who do not understand their policies or don’t recall if they purchased hurricane insurance, which is separate from flood insurance,” Gomez says. she adds that it may be possible to get a last-minute addition to the policy if needed, depending on the insurance carrier. Review commercial leases or mortgages. Business owners should also take time to review their leases and mortgages to understand what they would be liable for in case of damage. For instance, if a store awning falls in the wind and hurts a customer or passer-by, that may or may not be covered, Gomez says. Contact vendors and clients to renegotiate or waive outstanding deliveries or payments. In a situation such as an impending hurricane, business owners should “immediately get on the phone with parties to seek a modification,” whether that’s of delivery of products or supplies or receipts, Gomez says. The parties should either agree to a modification or try to negotiate a waiver altogether until a later date can be determined, she says. Temporarily close up shop. particularly because of the sluggish economy, small businesses such as grocery stores at times want to stay open because they see a lot of people going out and making emergency purchases, Gomez says. “It’s important for the store owner to not give in to the temptation to stay open, and close their store at a reasonable time, because they may expose themselves to a liability,” she says. “Many times small-business owners think they can chance it and take this risk, but it’s a temptation that they should avoid.”