Fire, flood, tornado, burglary, computer virus — any of these calamities could hit your business. Insurance will help you deal with the financial ramifications. Family, friends, and employees will assist you with the emotional stress.
Rebuilding your business won't be easy. However, there are steps you can take to protect your business from these misfortunes and reduce many of the hassles you might encounter.
Why use a safe?
Owning and using a safe is one of your best defenses. According to the Canadian Office Products Association, "safes provide an extra level of protection for documents, computer data, and other items that your company would be hard pressed to duplicate if lost."
Items, that if permanently destroyed, can have devastating effects on your business. According to the Gardall Safe Corporation, "statistics show that if a company's records are lost in a fire, 17% can no longer furnish financial statements, 14% suffer a reduction in credit rating, and 43% go out of business completely."
Not sure what kind of safe would work for you? Following are descriptions of available safes, along with information on how to choose the right one for your business.
Fire-resistant safes
Before purchasing a safe, ask yourself 'what will I store in the safe?' If you answer, important company documents, insurance papers, stocks and bonds, passports, wills, deeds, medical records, birth certificates, and other vital papers, a fire–resistant safe will likely suit your needs.
"If a company's records are lost in a fire, 17% can no longer furnish financial statements, 14% suffer a reduction in credit rating, and 43% go out of business completely," according to the Gardall Safe Corporation.
Fire–resistant safes are manufactured to keep the inside temperature of the safe below 350 degrees; the temperature at which paper begins to burn. Fire–resistant safes will maintain this inside temperature, despite the surrounding heat of the fire, for between 30 minutes and four hours, depending on which safe you choose.
Underwriters Laboratories, the company that rates safes, says "the hourly rating signifies the amount of time the device can withstand a standardized fire of controlled extent and severity."
Exactly how much protection does the average business need? Pamela Evans, senior vice president of sales and marketing for Sentry Safes, recommends purchasing a safe that offers at least one to two hours of fire endurance. "The heat is just incredibly intense in the middle of the fire. The longer protection you have, the more likely you are to be able to withstand the rigors of a fire." Higher–end models also offer some water resistance.
An important note to keep in mind; fire–resistant safes come equipped with a lock, but are not designed to provide the highest level of security against theft.
Security safes
If you plan to store valuables, such as cash, keepsakes, collectibles, heirlooms, and jewelry, you'll want to opt for a security or anti–theft safe. The Underwriters Laboratories rate security safes based on how long it would take someone to burglarize them.
Anti–theft safes typically offer protection against break–ins using "common hand tools, picking tools, portable mechanical and electrical tools, grinding points, high–speed and carbide drills not exceeding half–an–inch diameter, and pressure–applying devices or mechanisms." Higher–end models also guard against "abrasive cutting wheels, power saws, impact, tools, and a cutting torch," say the testers at Underwriters Laboratories.
The disadvantage to most security safes is that they are not fire–resistant. If you have items that require dual protection (fire– and burglary–resistance), insurance experts at The Hartford Financial Services Group say, "consider using a fire–resistant container or small safe within a larger burglary–resistant safe or vault."
Media safes
Media safes will protect your company's intellectual property. Additionally, they will keep your computer disks, videos, audio tapes, film, and company photos safe during a fire. As these items are far more sensitive to heat, media safes keep the inside temperature below 125 degrees Fahrenheit.
Since media safes must meet higher rating requirements, they tend to be the most expensive. If the cost of a media safe is beyond your budget, the Canadian Office Products Association says, "a more cost–effective approach is to purchase a separate media chest or media drawer for computer disks. If stored in a fireproof file cabinet or safe, this container [should] provide adequate protection."
Lock options
Safes come with a variety of locking devices, including key–locks, manual combination dial locks, and electronic combination locks. Evans recommends choosing the lock based upon personal preference. As long as the safe meets the anti–theft rating of the Underwriters Laboratories, they generally offer the same protection.
Not sure what would work best for you? Experts at The Hartford offer this recommendation; "if only one person will have access, consider a keyed lock. Consider a combination lock if more than one person will have access, but share the combination only with trusted employees."
Weight
No surprise, safes can weigh a lot. According to Evans, the safes typically purchased by small businesses weigh between 150 and 300 lbs. Most buildings should be able to accommodate the weight of these mid–range safes. However, Evans warns, "if you're starting to look at something over 500 lbs. you definitely need to make sure the building has been constructed in such a way that [structurally supports that] kind of high–density weight in a small amount of space."
"Owning a safe may entitle you to discounts on your insurance premiums."
Evans suggests placing heavier safes in the basement. If you have a space already planned, check the external dimensions of the safe to be sure it will fit in the designated area, through doorways, up or down stairways, etc.
Internal dimensions
Just how large of an interior compartment do you need? Adesco Safe Company recommends measuring the largest items you plan to store. These measurements will give you a good idea of how much initial space you'll need. Then "plan on at least 25% more space than you will presently need. This is for two reasons; first you may have forgotten some items, or you may acquire more, and secondly a 25% larger safe is not going to cost 25% more."
Call your insurance agent
If deciphering all the different features of safes becomes too confusing, Elizabeth Mosely, a communications specialist at the Insurance Information Institute, recommends calling your insurance agent. Your agent can help you pick the right safe based upon your business and storage needs. Plus, Adesco Safe Company reminds business owners that owning a safe may entitle you to discounts on your insurance premiums.
