Blog Details

Each September, National Preparedness Month reminds individuals and businesses to take proactive steps in preparing for natural disasters and emergencies. Whether it’s a hurricane, flood, or other unexpected event, being prepared can make all the difference when it comes to safety and recovery. While many people focus on stocking supplies or creating evacuation plans, legal preparedness is just as crucial to weathering any storm.

Legal readiness involves making sure that key documents, insurance policies, and emergency plans are in place, ensuring that both families and businesses can minimize risk and bounce back quickly after a disaster. Without proper legal planning, you could face challenges ranging from disputes over property damage to complications with business operations or family decision-making during a crisis.

Ensure Key Documents Are Safe and Accessible

Personal Documents

Storing essential personal documents such as birth certificates, Social Security cards, passports, and marriage certificates in a secure, waterproof, and easily accessible location is crucial. In the event of a natural disaster, having quick access to these documents can make it easier to recover your identity, apply for assistance, and prove ownership or legal status. Consider storing physical copies in a fireproof and waterproof safe, and create digital backups that can be securely stored in cloud-based storage to ensure access from anywhere.

Business Documents

For business owners, it's equally important to protect critical business documents such as operating licenses, contracts, and intellectual property filings. Disasters can disrupt operations, so having secure backups ensures that your business can continue to function or recover swiftly. Ensure you have both physical copies and digital backups of key documents stored securely off-site or in the cloud. Regularly review contracts and agreements to confirm they are up to date and compliant with current legal standards, as this can protect your business from further legal complications during a crisis.

Estate Planning Documents

Your estate planning documents—including wills, trusts, healthcare directives, and powers of attorney—are essential for ensuring that your legal and healthcare wishes are followed in the event of an emergency or disaster. These documents should also be stored in a secure, accessible location, and trusted family members or designated individuals should know where to find them. Keeping digital backups of these documents ensures they remain accessible even if physical copies are damaged. It's also wise to review and update these documents periodically to ensure they reflect your current wishes and legal requirements.

Review and Update Insurance Policies

Home and Auto Insurance

Review your homeowners' and auto insurance policies to ensure they provide sufficient coverage for damage caused by natural disasters such as storms, floods, and wind damage. Standard homeowners' insurance often covers damage from common events like fire or wind, but it may not fully account for more severe damage or specific risks like flooding.

Check your policy limits and consider increasing coverage if necessary, especially if your home is located in an area prone to severe weather events. Also, make sure your auto insurance policy covers natural disaster-related damage, especially if your vehicle is damaged or totaled in the event of a storm.

Business Insurance

For business owners, it’s essential to evaluate commercial insurance policies to ensure that your company is protected in the event of a disaster. Consider adding or reviewing business interruption insurance, which covers lost income and operational costs if your business is forced to close temporarily due to a disaster.

Additionally, confirm that your policy includes adequate liability protection, particularly if your business operations could lead to property damage or injuries during a disaster. Having comprehensive coverage ensures your business can recover quickly, minimizing downtime and financial loss.

Flood and Natural Disaster Coverage

Many people are surprised to learn that standard insurance policies often do not cover certain types of disasters, such as floods or earthquakes. In areas prone to flooding, such as riverbanks or coastal regions, it’s important to consider adding a separate flood insurance policy to cover damage caused by rising water.

Similarly, if you live in an area prone to earthquakes or other specific disasters not covered by your standard policy, explore specialized coverage to address these risks. Waiting until a disaster is imminent could limit your ability to secure the appropriate coverage, so it’s wise to make these adjustments well in advance.

Plan for Powers of Attorney and Guardianships

Healthcare and Financial Powers of Attorney

In the event of incapacitation due to a natural disaster or emergency, it’s crucial to have healthcare and financial powers of attorney in place. These legal documents appoint trusted individuals to make decisions on your behalf if you are unable to do so. Without these designations, your family may face legal hurdles in accessing your finances or making medical decisions.

• Healthcare Power of Attorney: This document allows a designated individual (usually a close family member or trusted friend) to make medical decisions on your behalf if you are incapacitated. This can include decisions about surgeries, treatments, or life support, ensuring that your healthcare preferences are respected even if you cannot communicate them yourself.
• Financial Power of Attorney: A financial power of attorney allows someone to manage your finances if you are unable to do so. This can include paying bills, managing investments, or handling real estate matters during a crisis. Having a trusted individual oversee your financial matters ensures that your assets are protected and your obligations are met in your absence.

Temporary Guardianships for Children

For families with minor children, it’s essential to plan for their care in case you become unable to care for them due to injury or are separated due to relocation during a disaster. Establishing temporary guardianship for your children can provide peace of mind that they will be cared for by a trusted person if you are incapacitated or unable to reach them.

Temporary guardianships allow another adult to make decisions regarding your children’s education, healthcare, and daily needs. In a natural disaster or emergency, this arrangement ensures that your children have a legally designated caregiver who can act in their best interests.

While these designations are often temporary, they are vital for providing stability and continuity for your children during chaotic times. Make sure to legally document these arrangements and discuss your plans with the designated guardians, so they understand their responsibilities in case of an emergency.

Create or Review Your Business Continuity Plan

Business Contracts and Agreements

Businesses should carefully review all contracts and agreements to ensure they contain force majeure clauses, which provide legal protection in the event of a disaster. A force majeure clause allows businesses to temporarily suspend or terminate obligations under a contract when unforeseen events—such as natural disasters—prevent normal operations. This protection can prevent disputes and legal consequences if your business is unable to meet contractual obligations due to a disruption caused by a storm or other disaster.

Emergency Action Plans

Every business should have a detailed emergency action plan in place to guide employees and managers through the steps needed to protect personnel and maintain operations during a crisis. A well-rounded emergency action plan should include:

• Emergency contacts: Maintain an up-to-date list of emergency contacts, including local authorities, key suppliers, and internal leaders responsible for emergency management.
• Backup suppliers: Identify alternative suppliers or backup options to ensure that your supply chain remains operational in the event of disruptions with your primary partners.
• Evacuation procedures: Establish clear evacuation protocols and routes to ensure the safety of employees in the event of a natural disaster, such as a fire, flood, or hurricane.

Employee Considerations

Employers must also review workplace policies regarding leave, remote work options, and payroll continuity in the event of a disaster. In times of crisis, employees may need additional flexibility, and businesses need to be prepared to address these needs.

• Leave policies: Ensure that your leave policies allow employees to take time off during a disaster, whether for medical reasons, family care, or personal safety.
• Remote work options: If physical business operations are disrupted, having a plan in place for remote work can help maintain productivity. Review the technology and communication tools needed for employees to work from home, and establish clear guidelines for remote operations.
• Payroll continuity: Plan how you will maintain payroll continuity in the event of a disruption. Employees depend on timely compensation, so ensuring that payroll systems remain operational during a disaster can reduce stress and improve employee retention.

Prepare for Dispute Resolution

Property Damage Disputes

Natural disasters often lead to significant property damage, which may result in disputes with contractors or insurers. To protect yourself or your business, it’s essential to have detailed legal documentation and contracts in place before disaster strikes. This includes:

• Clear contracts with contractors: When hiring contractors to repair damage, ensure you have well-defined contracts that outline the scope of work, timelines, and payment terms. This minimizes the risk of disputes over incomplete work or pricing disagreements.
• Pre-disaster inspections and records: Maintaining detailed records of your property’s condition, including photographs and written documentation, can help support your claim in the event of a dispute over the extent of damage or repairs needed.

Insurance Claim Disputes

Filing insurance claims after a disaster is often a complex and frustrating process, and disputes with insurance companies are common. To avoid delays in compensation or denial of claims, it’s important to thoroughly understand your insurance policy coverage. Here are a few tips:

• Know your policy limits: Be clear on what your policy covers and its limits, including coverage for natural disasters such as floods, hurricanes, or earthquakes, which are often excluded from standard policies unless added.
• Document damage immediately: After a storm, document all property damage as thoroughly as possible with photos, videos, and written descriptions to support your claim.
• Keep records of communication: If disputes arise during the claims process, having a record of all communication with your insurance provider—including emails, phone calls, and submitted documentation—will help you build a strong case for a fair settlement.

Mediation and Arbitration Options

When disputes cannot be easily resolved, mediation and arbitration offer cost-effective and efficient alternatives to lengthy court battles. These options allow both parties to come to an agreement with the help of neutral third-party mediators or arbitrators, often leading to faster resolutions.

• Mediation: Mediation is a collaborative process where both parties work with a neutral mediator to reach a mutually agreeable solution. It’s a flexible, informal approach that can help preserve relationships while resolving disputes more quickly.
• Arbitration: Arbitration involves a neutral arbitrator who reviews the facts and makes a binding decision. It is typically faster and less costly than litigation, making it an attractive option for resolving insurance or contractor disputes after a disaster.

Keller, Barrett & Higgins

As National Preparedness Month highlights the importance of being ready for unexpected disasters, now is the perfect time to ensure that your legal affairs are in order. At Keller, Barrett & Higgins, our experienced attorneys can guide you through the process of preparing your personal and business legal matters, ensuring that you are fully equipped to weather any storm.

Whether you need to review insurance policies, update estate planning documents, or create a business continuity plan, we’re here to help. Don’t wait until disaster strikes—proactive legal planning can minimize risk and ensure a smooth recovery.

Contact us today to schedule a consultation and discuss how we can assist with your legal preparedness:

• Phone: (513) 351-6058
• Email: info@kbhlawyers.com
• Office Address: 6900 Miami Avenue, Madeira, Ohio 45243