Create Your Hurricane Crisis Plan Now!

By Carrie Millar, MBA, CAE, FDA Services Agency Manager

Life in sunny Florida can have many benefits; relatively warm weather year-round and access to beautiful beaches are just two upsides of living and practicing in this state. However, there also are some downsides, the worst being hurricanes. These destructive, swirling storms come barreling toward the peninsula almost every year and, although storms can vary in intensity, they always bring some sort of damage with them.

Is your practice prepared to handle the chaos that comes after a big storm? In a state where hurricanes are a normal part of life, it’s vital to have a hurricane/crisis plan ready for your practice in the event of an emergency. Not every plan is the same, but there are several hallmarks of an ideal strategy to keep in mind while crafting your readiness plan.

Decide when your practice will close and reopen.
Will your closing coincide with county schools and/or other government entities? Have a policy in place and be sure that both your employees and patients are aware of that policy.

Notify patients and staff if you need to close/reopen.
Keep updated emergency contact lists and create a notification system that can be used in any emergency scenario.

Make sure your practice can afford a couple days of closure.
Keep an emergency fund to help your practice survive in case you need to be closed for several days after a storm hits. Business income insurance and off-premises power failure coverage also will help with the costs, but they often have a 72-hour waiting period.

Protect your data!
Back up your practice’s data regularly and keep important documents in a weatherproof safe. Also, keep copies of important records, such as employee, vendor and client contact information, collected and backed up at a secure off-site location.

Update your inventory list.
Make sure you have an updated list of all the major assets in your practice, or even better, take a video of all the items. This is a great way to make sure you can account for all items in the event of a loss.

Make sure you’re covered!
Communicate annually with your insurance agent to review your coverage details. Ask about any additional coverage that may be right for your practice. Being prepared can make a difference.

Key Coverages to Have for Hurricane Season

1. Wind/Hail Coverage: Make sure that your policy has coverage for physical damage caused from wind; often there is a separate deductible for this coverage.

2. Business Income and Extra Expense: This coverage pays for your practice’s missed income when there is physical damage to your building. It also pays for temporary office space in the event of a larger damage amount.

3. Off-premises Power/Utility Services: In the event that you do not have any physical damage, you may still have to close your practice because of interruption of communication, power or water services. This coverage will help recoup some of that lost income.

4. Flood Insurance: We recommend that all business owners consider purchasing this coverage to have complete coverage for any water damage. While wind driven rain is covered by wind insurance, rising water is not.

Make sure to read the new hurricane insurance guide developed by FDA Services for the 2016 hurricane season, “Hurricane Proof: 2016 Practice Readiness Guide.”

This article was prepared by FDA Services. FDA Services’ experienced staff is ready to get to work for you. If you feel you need a review of your current insurance policies, call us at 800.877.7597 or email insurance@fdaservices.com.

 

4 Important Considerations for Succession Planning

By Stacey Prince-Troutman, Broad and Cassel Senior Counsel

​You have worked tenaciously for the past 40 years to build your business and reputation in the community. Your business is a success, but recently, your passion for being involved in the day-to-day operations of the business and meeting with patients has dwindled. Instead, you dream of traveling more and spending time with family. You trust your younger associates to run the business while you are traveling and would likely sell the business to them once you retire. If you are in this situation, then now is the ideal time to formulate a business succession plan.

Planning to transition your business to your associates should start now, not when you’re three weeks away from retirement. An effective business succession plan takes years to successfully execute and should consider the following:

  • Mentoring the next generation of leaders. Your associates should be given the opportunity to be “mentored” into transitioning from skilled practitioners to business owners. Cross-training is the key to ensuring a successful transition. Associates should be trained in managing staff, dealing with insurance companies, vendors, accounting practices and more.
  • Obtaining a business valuation. You should retain a qualified business appraiser and accountant to determine the fair market value of the business. Once a valuation is obtained, a schedule for your payout should be discussed so that the associates will have the funds needed — at the appointed time — to acquire your business.
  • Preparing an agreement. Once an agreement is reached, an experienced attorney should be retained to draft an agreement that provides for the transition of the business to the associates. In addition to including the basic deal points, a properly drafted agreement should include certain safeguards for breach, death and other contingencies.
  • Updating your estate planning documents. It’s not unusual for your business to be one of your most significant assets, if not the most significant asset. Accordingly, you should update your estate planning documents to consider the receipt of your remaining interest in the business (or outstanding payments under the agreement) by your heirs following your death in the event you die before fully transitioning the business to your associates.

A proper business succession plan is crucial to the viability of your business after your departure, and there is much that goes into a well-structured and thoughtful plan. A qualified business appraiser, accountant and attorney make up the team that is an invaluable asset in this process — ultimately assisting in formulating a plan and overseeing its successful execution. As we kick off the New Year and plan for the future, this might make for a good resolution.


Stacey Prince-Troutman is Senior Counsel in the Orlando office of Broad and Cassel. She is a member of the firm’s Estate Planning and Trusts Practice Group and can be reached at
sprince@broadandcassel.com or 407.839.4200.