July 19, 2011
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Warner Cruz shares lessons learned from coming to the aid of businesses faced with disaster and offers advice to owners to protect themselves against future uncertainties.
When disaster strikes, JC Restoration swings into action. It's an Illinois-based company offering the equipment and expertise to assist with the aftermath of flood, fire or storm, with divisions including Emergency Services (which dispatches a team within two hours to provide backup power or structural stabilization), Contents (cleaning, deodorization services, drying), or Large Loss (custom coaches and RVs acting as “mobile command units” with satellite communication and computers). “We're like paramedics in some ways,” says owner Warner Cruz of the $15 million company. “When disaster strikes, we're there to stop the bleeding, and keep the vital signs going.”
Here, Warner Cruz talks about how his company helps other businesses prepare for—and recover from—the worst that can be thrown at it.
Q: How would you describe the work of JC Restoration?
A: We piece shattered lives and livelihoods back together. Of course there's a price to pay for it, and you need the insurance to cover it, but we're saying that if disaster strikes, you don't have to be overwhelmed by it. We have people called First Responders that we'll send to a scene to deal with people who might have lost everything. We'll provide cell phones, diapers, toys, toothbrushes, soap or restaurant coupons to give them time and space to regroup. We'll go in and retrieve essentials like tax papers and credit cards if we're able, and we'll offer counseling to employees and clients alike.
Q: What advice would you give to businesses when it comes to dealing with disaster?
A: I'd stress the importance of pre-emptive disaster planning. I'll give you an example. One of my directors belongs to a network of library associations. He suggested a scenario where their buildings are suddenly, overwhelmingly flooded—what would they do? And their answer is more or less, "Oh, we'll head for the Yellow Pages." So the books are getting soaked, and there's no real contingency plan. We'll walk though their buildings for them, tabulating the relevant factors—where are the generators? How many elevators? Then we'll draw up a booklet, detailing floor plans and listing contact numbers for their plumbers, gas companies, security contacts, etc., and we'll digitize that so if their documentation is destroyed, they'll have back-up files. Did you know that 43 out of every 100 businesses close down completely after a disaster? They just don't survive. So yes, this is an expensive endeavor, and it might never be needed, but it's still more cost-effective than if the unthinkable were ever to happen.
Q: What's the most basic thing a company or individual can do to protect themselves from the worst-case scenario?
A: They need to arrange IT back-up. And they need to make sure their insurance premiums are up-to-date. The grim reality, all too often, is that business owners have a friend who wrote them a general liability policy five years ago, and they just keep re-signing it, but their business has grown in the interim, and they find themselves underinsured. So you need an annual review where you ask your agent to re-evaluate and keep on top of things.
Q: How quickly can you get a stricken business up and running again?
A: I'll give you an example. We were called to a restaurant that was flooded after a local river burst its banks. There were actually fish swimming through the kitchen. Within six weeks, we'd removed the contaminants, eliminated the odors, repainted the walls and completely restored the place. Rebuilding is a piece of cake, but you can't skimp on the remediation. If you have a fire, you've got to clean the building up thoroughly, or the smoky odor will come back when the weather gets hot. Not everyone understands this, and that's why I'd like to be more of an educator in future, to raise awareness of pre-emptive disaster planning. To me, there's great satisfaction in bringing order out of chaos.
Natural Disasters: Tips for Business Survival
- Recognize the importance of pre-emptive disaster planning.
- Withstand unexpected setbacks by creating diverse revenue streams—don't put all your eggs in one basket.
- Institute an annual insurance review to mitigate against under-insurance and keep on top of your liabilities.
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