Business Emergency Plan | Importance and How to Prepare Business Emergency Plan?

Sushree Sangeeta Behera Sushree Sangeeta Behera
Sep 1, 2021 7 min read
Business Emergency Plan | Importance and How to Prepare Business Emergency Plan?

An emergency is something that not someone can either plan to avoid or can avoid by planning it perfectly also. These emergencies create sudden situations where things do not just stay in our hands. These emergencies create havoc situations in every sector. It also has a lot of adverse effects on the business factor. The business sector gets all its plans washed away, and the company needs to create a whole new business strategy.

To handle these types of complications, companies makes a business emergency plan. Many expertise and tycoons have a round table conference to create this type of emergency handling plan.

Types of Business Emergencies
Why should one have an Emergency Plan?
How To Prepare For A Business Emergency Plan?

Types of Business Emergencies

A business emergency plan is processed and made thoroughly to handle sudden and unexpected situations. There are a lot of business emergencies such as:

  • Medical Emergencies
  • Natural Disasters
  • Prolonged Power Outages
  • Security Breaches
  • System Crashes
  • Lawsuits
  • Loss of an Employee or Business Partner

Medical Emergencies

Medical emergency in Business
Medical emergency in Business

A medical emergency can occur at any time, can make havoc on the whole company. It happens frequently and of a sudden. No one can predict its fore coming, and this medical emergency can be anything. It could be just a superficial injury, a significant car accident, or just a chaotic surgery.

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Natural Disasters

A natural disaster itself is making its meaning. It occurs naturally and by nature; hence no one has control over it. Floods, fires, earthquakes, hurricanes, and sometimes it can take the shape of storms. They just come and quickly start affecting properties and inventory.

Prolonged Power Outages

This plan is followed to have a proper and safe passage for the employees and customers during a power outage. If a business relies on electricity, then a power outage may affect the employees to stop the work. Hence, a prolonged Power outage carries a premium role.

Every single item is stored manually or by a soft copy. And, unfortunately, sometimes all these can just get faded away if it is not backed up frequently. It can cost a lot, and for this, an emergency business plan is necessary.  

Security Breaches

Business Securities
Business Securities

The security breaches may sometimes get intentional and sometimes unintentional. But however it may be, the confidential data get transferred to an unidentified and rough source through this process. Hence, a business emergency plan is also a must in this case.


A claim or dispute in some cases may arise a lot of complications in the future, which may affect the business somehow. Hence, a proper law abided business emergency plan carries a lot of weight in this whole structure.

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Loss of an Employee or Business Partner

As the future is uncertain, it has to be something for the plan if it loses an employee or business partner. Without a proper emergency plan, the company may get through a lot of havoc. Hence, an emergency plan is required.

However, all these emergencies can be divided into different levels of a business emergency. These measurements are performed keeping an eye on the rational threats and the potential threats to lives, property.

Hence the emergencies can be categorised as:

1. Routine Emergency: An emergency handled daily is termed a routine emergency. This emergency is controlled by police, fire, medical expertise, or by some operation departments. The nature of these emergencies is not that serious, and they do not put any life at stake and do not create a significant impact.

2. Minor Emergency: When a single department of the company gets an impact by the emergency. But in a greater area, it is termed as a minor emergency. These are managed by the expanded incident command structure and the emergency operation center.

3. Major Emergency: Whenever more than one departments face an emergency, due to any of the unknown reason, this emergency is termed as the immediate emergency. This type of emergency does not occur daily, and whenever they occur, they create an adverse effect.

4. Catastrophic Emergency: A catastrophic emergency is licensed when the whole company is under a crisis. It is when handling that situation that goes out of the company’s control. It impacts a lot of life and properties and needs an aggressive response it. The recovery period is most likely to be a significantly longer one than the routine emergencies.

Why should one have an Emergency Plan?

Business emergency plan in Business
Business emergency plan in Business

From the very starting of our consciousness, we have always been taught of having a second plan or plan B in between our every plan. These plans help us not freaking out when we are in a complicated situation. Because we cannot control these complex situations, we can try to counter these emergencies. Hence, from all these points of view, keeping an emergency business plan in mind is very important.

1. These emergency plans can help the company and the employees themselves to stay safe and avoid the minimum effects during this whole event of a disaster.
2. These plans can help in specifying proven procedures to handle sudden and unexpected situations.
3. It is to be kept in mind that the pan intends to be prepared, not to stop the upcoming emergency. Hence, by the implications of the pan, we can reduce damages and prevent fatalities and livestock.

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How To Prepare For A Business Emergency Plan?

Saving a business from an emergency depends on what our intention is. It can make a difference in staying and running the business and lose everything that we have. Therefore, keeping an emergency business plan is the most flexible and easiest way to provide a safer side to survive and recover when needed. So, the programs include:

Focusing on preventing emergencies

Regular audits and regularly checking on fire prevention and safety systems are essential to determine fore-coming disaster planning. So, by focusing on these routine checks, one can easily handle the situation.

Creating an emergency kit

Emergency kit includes flashlights, first aid supplies, radio powered with batteries, tool kit, extra batteries, some non-perishable foods, and some sealed bottled water. This emergency kit must be available to everyone during the emergency period to save their life.

Creating backups of essential data

When there would be no proper backup for the data, it becomes a disaster when these types of emergencies take place. Hence, keeping backup copies in separate folders and drives is one technique that can save from primary troubles.

Knowing the insurance coverage

The agent should review the insurance policy regularly, which can help in making sure and understanding the deductibility, and the limitations of the different types of coverage.

Knowing the risks and prepare accordingly

Being aware of the total amount of risk one can go through is an excellent decision itself. In that way, one can keep an eye on the minimum potential damage and can cover up the loss, and take action to save everything from disaster.  


Hence, these are how one can easily distinguish what it takes to plan an emergency business plan. The way it seems, it is not that simple, and it is not that difficult either if performed well.

In every business firm, the emergency business plans give almost priority because if there remains nothing to save, then on what one would be working on. It would make a chaotic and unreasonable situation for the employees and the company to handle and start from the starting point again. Therefore, one should plan the emergency plan accordingly and make it better efficient to work during an emergency.


What is an business emergency plan?

Business emergency plan is a written set of instructions that outlines what workers and others at the workplace should do in an emergency.

Why is it important to have an emergency plan for business?

Business emergency plan is to reduce the negative impacts, protect the community and maintain business continuity.

What things should be included in a business emergency plan?

Business emergency plan should be made considering below things:

  • Focusing on preventing emergencies
  • Creating an emergency kit
  • Creating backups of essential data
  • Knowing the insurance coverage
  • Knowing the risks and prepare accordingly
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