Preparing for a Facility Shutdown During the Pandemic

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One of the unfortunate consequences of the COVID-19 pandemic is the many businesses that have had to furlough workers and close facilities as a direct or indirect result of stay-at-home orders from states and municipalities. When facilities are closed and left vacant, they can become more vulnerable to exposures such as vandalism, unauthorized access/theft, fire damage, seasonal flooding or windstorm damage and even neglect in maintaining valuable equipment or building service components.

Having a plan to secure, monitor and maintain a facility that has to be closed for a period of time is essential to reducing the possibility of real or personal property loss, business income interruption (once the facility is approved for reoccupation), loss of customers or market share in the industry or damage to reputation from a prolonged shut down from a property loss.

Regardless of industry, proper procedures must be followed when a facility must close for an extended time period. Preparations prior to closing, activities to maintain during closure and precautions taken to bring the facility back to its pre-closure condition for reoccupation are all steps that must be considered.

Prior to closing a facility:

During the facility closure:

Once the facility is approved to reopen:

A final recommendation is to always contact your insurance broker to report plans to close/vacate a facility and to reopen/occupy a facility. This allows your commercial insurance coverages to be reviewed and modified to address the changes in use and occupancy.

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