7 steps to help businesses recover from earthquake

Earthquakes can cause tremendous damage to commercial properties and, contrary to popular thinking, it’s not just the magnitude of a quake that determines the extent of recovery and rehabilitation.

The U.S. Geological Survey notes that although damage usually occurs after an earthquake magnitude reaches over 4 or 5, there are additional variables to consider, including the physical distance from the quake’s epicenter, the type of soil a building rests upon, and the events that can often occur after an earthquake (e.g., fire, landslides and tsunamis). Furthermore, damage from the “mainshock” (i.e., the largest earthquake in the sequence) may be exacerbated by subsequent, smaller and potentially destructive (albeit diminishing) aftershocks.

It’s also important to remember that when an earthquake strikes, it’s not just your immediate property that is affected. The surrounding region may experience damage to roads and bridges, as well as utility systems, that will impede recovery.

Although this article is focused on rehabilitating commercial property, the safety of your employees and the surrounding community must be considered every step of the way. It’s worth emphasizing this observation from the U.S. Geological Survey: “The greatest risk in an earthquake is the severity of the shaking it causes to manmade and natural structures and the contents within these that may fail or fall and injure or kill people.”

Keep in mind that aftershocks may continue for several weeks and with them, risks to people and property. All of your recovery efforts should be undertaken with safety as the top priority. Here, then, are some helpful tips:

1. Heed advisories from federal, state and local agencies.

It’s important to access the most recent safety updates and information from federal, state and local government authorities. Listen to television and radio reports. (Depending on the severity of the event’s impact on communication systems, a portable, battery-operated radio may be useful.) Also, ensure you know which regulatory agencies are responsible in your area for post-earthquake inspection and evaluation, and which authority grants clearance/permission to restart operations.

If a disaster has been declared, the Federal Emergency Management Agency (FEMA) is among the first agencies onsite. FEMA’s mobile app can help you keep tabs on changing conditions and provide access to important resources for a variety of emergency and disaster scenarios.

2. Maintain communications with your internal and external stakeholders.

Depending on the severity of the earthquake and your region’s readiness/ability to respond, businesses may need to shut down operations for an extended period. It’s important to maintain internal and external lines of communication, and update your messaging as needed. The greater the variety of communication channels, the better, because earthquakes can disable utilities and communication services.

Consider your different audiences:

• Your employees: Share updates to displaced workers via channels such as your company website, text messages, social media and/or phone messages.
• Your insurance distributor and carrier: You may or may not have earthquake insurance. If you do, call your insurance representatives to begin the claims process. Follow their guidance in terms of recording and reporting damages. Zurich North America customers can find information about filing a claim here. If you do not have earthquake insurance, your insurance carrier and/or broker may be able to help with resources to support recovery and rehabilitation of your business. (Do you need earthquake insurance? The Insurance Information Institute offers a helpful Q&A for businesses.)
• Your customers and vendors: Update your website's homepage or blog to communicate with them. Social media and text messaging can help you keep your business connected. You may also want to record daily updates on your general phone line.
• Corporate management: As the recovery process continues, provide periodic updates on conditions and progress.

3. Take proper precautions when visiting your property after an earthquake.

When authorities have assessed your site and allowed you access, you’ll be able to begin the recovery and rehabilitation process. Let caution rule. You must first establish that your building is safe. Earthquakes can severely damage structures, e.g., buildings, bridges and dams. After an earthquake, have a registered professional engineer or architect inspect and certify that not only is your building stable and safe, but so are its stairs, floors and roofs.

Earthquakes create a variety of risks, including water system breaks that cause flooding; exposure to toxins from broken sanitary sewage systems; exposed and energized electrical systems; exposure to airborne smoke and dust, such as asbestos and silica; natural gas leaks; structural instability; slip, trip and fall hazards and much more.

Dress properly, including work boots, durable gloves, hard hats and safety goggles, to protect you from broken glass, nails and other debris, as well as potentially toxic material spills. Even areas that appear safe could have been compromised by the earthquake. Carefully open doors and cabinets: Shifting contents can present a risk. Be aware of unstable ground or flooring that could give way. Also, avoid walking near or beneath chimneys; they can be weakened after an earthquake and may tumble. Should an aftershock occur during your visit, practice “drop, cover and hold on” — the same practice advised during the initial earthquake. Most importantly, if you hear unusual sounds, evacuate immediately; the building could be about to collapse.

4. Assess and document damage to your property.

First, perform a proper shutdown of your property. You should already have established clear shutdown procedures as part of an earthquake scenario. These procedures should include actions such as shutting all piping valves, draining pipelines, securing hazardous material, containing leaking materials, etc.

Bring a camera, as well as portable chargers, to photograph and/or shoot video of damages before any cleanup or restoration work is initiated. Document damage to physical structures as well as inventory, supplies, furniture, contents, equipment and business losses. Remember to keep track of your expenses. Some priorities include:

• Check water, gas and electric lines.
• Check, and regularly recheck, your fire protection systems. This includes confirming that all sprinkler and hydrant valves are open and your fire water supply is operative. Damaged fire protection systems need to be restored and working as soon as possible.
• Look for cracks and/or damage to the roof and foundation of your property.
• Check all electric appliances and electronic equipment for damage.
• If water lines broke, look for water damage.
• Locate any critical documents you may need and store them in a safe place.

During your damage assessment, if you identify potential structural, electrical and/or gas leak hazards that may have been overlooked by authorities, report them to the proper agencies as soon as possible.

5. Contact contractors and vendors to initiate repairs to your commercial property.

Once the status of your facility has been established, it is necessary to prioritize repairs and start-up with qualified contractors and maintenance personnel. Remember that the severity of the quake may make it difficult to initiate repairs. Scheduling repairs may be more difficult due to reduced staffing and/or supply shortages. You may need to prioritize based on urgency and available resources. The contingency plan should contain:

• Procedures to contact internal and external resources to organize recovery
• Prioritized damage assessment targets, each with assigned responsibility
• Prioritized operational recovery targets based on a realistic assessment of the organization’s current resources and the supporting infrastructure
• Contact protocols for suppliers (to determine availability of supplies) and customers (to keep them informed of current delivery capabilities)
• Basic utility assessment process to determine the available resources: This assessment targets key information such as what utilities exist, what can be restored, and expected downtime. It is also key to identify if alternatives are available.
• Up-to-date contracts or agreements should be available with external contractors who are critical for repairs, salvage and reinstatement. Experience has demonstrated that after an earthquake, regional demand for key technical and repair personnel often outstrips demand (e.g., professionals for sprinkler systems, utilities or specialists for heavy machinery or equipment).
• Maintain a thorough record, include written receipts, for anyone you talk to and/or do business with.
• Always prioritize the protection of your recovery staff and maintain communication with them throughout cleanup and recovery operations. Consider disaster-site management tips from The National Institute for Occupational Safety and Health (NIOSH), part of the Centers for Disease Control and Prevention.

6. Prohibit hot work until fire protection is restored.

Fires caused by earthquakes are a major, ongoing hazard because gas and electrical lines may become dislodged. A single spark can launch a firestorm.

In addition to prohibiting hot work until your fire protection is restored, you also should not use open flames (e.g., matches, lighters) or operate any electrical or mechanical device that can create a spark. This includes light switches, generators, motor vehicles, etc. In addition, never use gas generators, gas or charcoal grills, gas lanterns or camp stoves indoors; they can release deadly carbon monoxide and/or be a fire hazard during an aftershock. Needless to say (but we’ll say it, anyway): No smoking!

7. Review your response.

When your business is operating again, set aside time for a thoughtful review of your response and recovery processes. Where did you succeed and where was there room for improvement? Ask these questions in terms of your own preparation, the vendors you contracted with and any critical tasks you may have overlooked.

Visit the Earthquake Resource Hub for additional insights.