In the last year alone, this country has had more than its share of natural disasters—floods, wildfires, hurricanes and tornadoes have wreaked havoc on homes and businesses. Human error and malfeasance account for immeasurable workplace disruptions as well. We’ve seen computer hackings that shut down servers, electrical fires, accidents related to substance abuse and even terrorist attacks. As a business owner, it is imperative that you be proactive and put into place a plan for emergencies that will not only ensure the safety of your staff, but also protect you from liability down the line. Few companies take the time to instate a comprehensive business continuity plan that fully covers emergency preparedness in the event of a natural disaster, or other major business disruption. The goal of the plan should be twofold; put a team in place so that operations can smoothly and successfully resume at the end of the interruption, and, just as important, make sure that the proper documentation procedures are followed to avoid liability or a possible lawsuit.
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HospitalityLawyer.com | Setting the Record Straight by Documenting the Business Disruption
1. By David Samuels and Bob Mellinger, Partners, Michelman & Robinson
In the last year alone, this country has had more than its
share of natural disasters—floods, wildfires,
hurricanes and tornadoes have wreaked havoc on
homes and businesses. Human error and malfeasance
account for immeasurable workplace disruptions as
well. We’ve seen computer hackings that shut down
servers, electrical fires, accidents related to substance
abuse and even terrorist attacks. As a business owner, it
is imperative that you be proactive and put into place a
plan for emergencies that will not only ensure the
safety of your staff, but also protect you from liability
down the line. Few companies take the time to
instate a comprehensive business continuity plan that
fully covers emergency preparedness in the event of a
natural disaster, or other major business disruption. The
goal of the plan should be twofold; put a team in place
so that operations can smoothly and successfully
resume at the end of the interruption, and, just as
important, make sure that the proper documentation
procedures are followed to avoid liability or a possible
lawsuit.
Your Emergency Team
A business continuity or“emergency management”
team is fundamental to a well thought out business
continuity action plan. Every person should have a
clearly defined role, and it is helpful if that role is tai-
lored to each team member’s particular strengths. A
good example is that most offices have“fire wardens,”
employees who will supervise an evacuation and take
role call during a fire drill, or real fire, should one
occur. It would be foolish to choose an employee who
is part-time or frequently works from home, as the
person should be reliable and generally available in the
event of a business disruption. Team captains, and other
people on your business continuity team, should be
delegated authority to make decisions in the event of
an emergency.
2. The Scribe
One of the most important and often overlooked
emergency team positions, especially when it comes
to issues of liability, is the scribe. The scribe documents
everything that happened during a crisis or disruption.
The creation of a comprehensive record will prove
invaluable years later should you or your firm be hit with
a lawsuit.
The scribe is essentially a shadow of the team
captain. Each individual on the business continuity
team should report to the scribe, who must be familiar
with the business continuity action plan. When a record
is prepared with fastidious care, it can be turned over to
your insurance carrier or defense attorney and serve as
a significant tool during litigation and depositions. In
most states, the statute of limitations for such litigation
is one to three years, and depositions often take another
twelve months. Thus, one could be asked about specific
actions and decisions that took as much as four years
ago, which can be extremely difficult to recount without
a comprehensive record.
The scribe needs to document the following
information; the time and date something occurred or
was assigned, decisions made and why, actions taken
and why, people involved, witnesses and outcomes.
It is not necessary to have a verbatim report, but the
information should be objective and factual. The scribe
should not record damning, or potentially
incriminating statements. Furthermore, omit
statements that are based purely on opinion or
speculation. It’s imperative to keep the record factual.
This record should also be kept confidential in order to
maintain privilege. In the event that people such as
legal representatives or their private investigators
request documentation, speak to an attorney before
taking any action. An attorney will know the nuances of
when privilege can be waived in these types of
situations.
You can have the best action plan and business
continuity team in place, but without a scribe
documenting events, you are neglecting a crucial
aspect of preparedness and opening yourself up to
potential lawsuits. The scribe is one of the most
important members of the emergency team, and his
or her work will be instrumental in setting the record
straight later. Appointing and properly training a scribe
is a necessary business decision, and can prove to be a
lifesaver long after the dust from the disaster or
business disruption has settled.
DAVID SAMUELS is a senior litigation partner with Michelman &
Robinson LLP, specializing in the Hospitality, Insurance, Construction,
Government & Municipalities, and Healthcare Industries. He has more
than 20 years of litigation experience and is a veteran of numerous jury
and bench trials, arbitrations and mediations.
BOB MELLINGER is the founder and president of Attainium Corp,
which specializes in business continuity, emergency preparedness,
crisis management and disaster plan testing services for associations,
credit unions, law firms and other professional corporations. Bob
can be reached at bmellinger@attainium.net or (571) 248-8200.