Animal Management in Disasters, Volume 2, Animals and Communities

Disasters are always costly. Frequently people think of highly popularized large-scale disasters seen on television as the costliest disasters. However, the common costs associated with everyday disasters are by far the greatest disaster-related costs every year in the United States.

EXAMPLES OF COMMON LOCAL DISASTERS THAT ARE ALSO TYPICAL OF LARGE-SCALE DISASTERS

The events that can affect one veterinarian practice or animal shelter are indicative of the problems faced by many in large-scale disasters:

- Despite diligent daily backup of records the practice/shelter computer fails one day. A replacement cannot be installed for 3 days. A new system is needed but, when installed, has an error rate of 5% in the stored data.

- A municipal water supply main bursts, which takes 2 days to repair. During that time there is no water supply to the practice/shelter.

- A car hits a utility pole that carries power to the business. The phones and security system are no longer functional.

- A transient person is found dead close to a practice/shelter. The police department establishes a security ring around the site, which includes the entrance to the business. Clients are deterred for 2 days, and the local television news covers the story.

- A fire breaks out in a neighboring dry cleaning business. The practice/shelter has to be evacuated.

- A technician accidentally drops and breaks a bottle of halothane. All staff members are evacuated, and somebody phones 911. However, nobody takes the Material Safety Data Sheet (MSDS). The fire department does not know how to deal with the problem and evacuates the entire city block.

- The owner of the practice is injured by a dog and is hospitalized for 3 days.

Examples of the losses resulting from common disasters are loss of adequate animal care and health expertise and loss of income and family support to employees. Clients may have to seek advice from a neighboring practice while their regular veterinarian’s practice is closed. Clients will be confused because they will have to reschedule elective appointments and seek alternative advice midway through therapy. (This could be especially difficult for a patient undergoing chemotherapy when the records of the original veterinary practice cannot be accessed.) Business disruption may also affect client loyalty and a practice’s reputation. Accumulation or euthanasia of animals in shelters that otherwise might have been adopted can also result. Additional examples of the typical impacts of disasters are listed in the hazards sections of this book.

Large-scale disasters may also affect the sociodemographics of the area where a flourishing practice once stood. For example, after Hurricane Andrew the client base changed sufficiently for veterinarians to have to revisit their clientele base before resuming work or making a major financial commitment for future plans.

TYPICAL LOSSES SUFFERED BY BUSINESSES IN DISASTERS

The animal care industry is large and encompasses many different activities, both commercial and not for profit (Table 12-1). Some may not appreciate the use of the term industry. Not-for-profit organizations may not like to be seen as businesses, but they too cannot operate without funding and in many cases rely on professional fund-raisers to secure that funding (see information on humane societies and advice on where to send donations in Chapter 22). What many of these businesses have in common is that they are small businesses, and as such they are affected similarly to other small businesses in disasters. A number of studies have shown the vulnerability of small businesses to disasters.

Small businesses, such as veterinary practices, animal shelters, feed and accessory suppliers, and farms, are particularly vulnerable to disasters because the cost of disaster mitigation, insurance, and recovery is relatively higher than for large national chains. This relatively higher cost has led to a lower percentage (25%) of small businesses having disaster mitigation plans and plans to reduce the impact of business disruption than large businesses (more than 40%).

Several studies have addressed the effects of large-scale disasters on businesses. Their results are typical of the reasons that businesses shut down in both large and small-scale disasters. In addition, catastrophic events can accompany disasters, such as destruction by fire or tornado, which may be local or occur as part of a large-scale disaster, such as a hurricane or flood. Catastrophic disasters often have the worst impact on unprepared businesses. On average, small businesses affected by catastrophic events have a less than 10% chance of ever recovering.

The impact of disasters on small businesses can be very damaging. For example, every day in the United States over 200 fires destroy businesses. Less than 50% of businesses affected by a major disaster make a full recovery. Of all businesses that survive for 1 year after a disaster, the small businesses are in the worst economic shape. This is probably related to small businesses having on average less insurance coverage and less resources to pay for damage. Almost half (40%) of businesses affected by a disaster are out of business within a year of the disaster, and an additional 29% go out of business within 2 years of the disaster.

Businesses that lose data are also vulnerable. Loss of data is a common disaster. Studies of small businesses have shown that over 50% of businesses suffer computer failures several times a year for at least an hour and over 11% suffer computer failure for more than 24 hours. In another study 95% of businesses that lost access to their data for 10 days filed bankruptcy within 1 year. Half of those did so immediately. Businesses with resumption plans were operational on average 40% sooner than businesses without plans.

The estimated average cost of business disruption for veterinary practices is shown in Table 12-2. The average direct cost of business disruption for U.S. veterinary practices is over $270 per hour. The indirect cost is much higher. Indirect costs are due to permanent loss of clients, repairs, and replacement of equipment.

Because the problems related to business disruption are similar for large and small scale disasters, business continuity planning (disaster preparedness for businesses) in the animal care industry will find its firmest roots at the level of the individual business.

FIG. 12-2 Devastation at a veterinary clinic after Hurricane Andrew. (Photo by Larry Dee.)

Damage to Businesses Affected by Earthquakes

Several studies have looked at specific disasters and how they affected businesses. After the 1978 earthquake in Whittier, California, of the over 400 businesses affected, 200 were closed for 10 days, approximately 100 were closed for up to a month, 60 temporarily relocated, and 30 never reopened. These are typical statistics for large-scale disasters. Many of the findings are applicable to small-scale disasters too.

In a larger study of business disruption after the Northridge, California, earthquake, business owners were asked to complete a survey to describe the extent of damage and costs to their business. The most common types of damage are summarized in Tables 12-3 and 12-4.

Physical Damage Versus Business Interruption

Studies of large-scale disasters are good indicators of the major expenses that are likely to occur from a disaster of any scale. The greatest costs to businesses in disasters usually result from business disruption. This finding has fundamental importance to the economy of a practice or shelter and to its ability to function as a critical facility in a disaster.

One of the first indications that business disruption is the major cost to businesses came from a study by Phipps and Jirsa in 1992 that looked at business disruption resulting from the Loma Prieta, California, earthquake. This study found a discrepancy between engineering damage and loss of function. Since then, several other studies have evaluated through surveys the impact on businesses of disasters. These studies provide an insight into the common problems and costs associated with disasters. Typical business interruptions that increase costs are employees who cannot get to work, lack of water or electricity, customers who cannot gain access to the building, and lack of public safety and order.

Of business owners in Loma Prieta, 88% had not taken measures to mitigate the impact of an earthquake, but 92% of businesses sustained space or building damage. However, as much as 90% of the damage was estimated to be nonstructural or contents-related damage. Therefore structural damage may not be the best indicator of the real total cost of damage to businesses.

Long-term consequences of business disruption included changes in the clientele base. In the 14 months after the earthquake 35% of businesses reported a decrease in the number of clients or customers. The owners of these businesses estimated that this loss of clientele resulted in an overall loss in revenue of 23%. Although some businesses reported no change in clientele or even an increase in the number of customers, the two health provider–related businesses in this study both reported losses caused by decreased numbers of clients. Five out of six businesses that reported extensive damage also had to lay off employees permanently. Other businesses reported temporary layoffs for 7 to 60 days.

Repair costs

The average repair costs for businesses after the Northridge earthquake were over $15,000 (median less than $5000) per business. The effect of not being adequately prepared is reflected in the amount of damage that was paid for by the owners of the businesses: 38% of owners paid for all of the repairs out of their own business accounts, and an additional 29% of owners paid for part of the repairs out of their personal savings. Only 17% had adequate insurance for the insurance company to pay for all repair costs. Most insurance claims were settled within 6 weeks. Only 19% of businesses applied for small business loans from the Small Business Association to help finance the cost of repairs. The range in time to payment on these loans was 56 to 300 days.

Reopening costs

The cost of reopening differed primarily depending on the owner of the business. Businesses that were part of national chains usually had their costs of reopening covered from the national head office. In contrast 88% of local businesses paid for the cost of reopening out of their own resources.

Impact of floods on businesses

In a study of 1079 businesses after the 1993 floods in Iowa, the flooded businesses tended to be older businesses. Among those that lost access to services the median duration of service interruption in hours was longest for health care providers and related businesses (Table 12-7). The most common reasons for closure were loss of water supply, electricity, and sewer and wastewater services and a decreased number of customers. These are also essential services for all veterinary practices or animal shelters and indicate their vulnerability to disasters.

Susceptibility of Businesses to Computer Failure

One major study looked at the causes of data loss in the computer industry. This study indicates the likely causes of losses associated with the use of computers and therefore has direct relevance to many veterinary practices and shelters. The single greatest factor associated with the loss of data was infrastructural problems such as power failure and power surges. Therefore continuous power supplies with surge protection are highly recommended to mitigate the impact of disasters in veterinary practice and shelters using computers. The second most common category of data loss was due to natural hazards. These made up over 20% of the causes of power losses associated with the use of computers (Table 12-9).

Stress

Disasters bring with them many unfamiliar and stressful situations and persons who need to be dealt with. These demands can be very distressing to disaster victims. Practice owners and shelter managers are at greatest risk of these stresses because they are faced with conflicts between caring for themselves, their families, their business, and their employees.

The kinds of demands that arise include the following examples:

- Insurance adjusters who want to settle immediately and reduce their costs

- Police, fire, and Occupational Safety and Health Administration (OSHA) officials who want explanations and launch investigations

- Distraught clients, worried employees, and concerned family members who all want to know what to do next, whether their pets are safe, or if a paycheck can still be expected

Veterinarians and staff also may feel detached from the clients they enjoy working with every day. These are real existential needs, and the decisions that have to be made can also affect whether a family’s children can still be fed or attend college.

Employees should be protected as much as possible from hazards and additional stress and trauma. To facilitate this, employees should be directed to secured areas where they can congregate. It is best if these facilities are indoors with small rooms that are monitored to prevent unwanted visitors and the press from gawking at the victims. Employers, managers, and other persons in authoritative positions in a company should visit with the employees to boost morale and ensure that everything is being done to speed physical and emotional recovery. Some simple techniques for helping employees cope with stress are summarized in Table 12-10. Rumors must be dispelled, and professional help may be sought to assess the potential psychologic damage to victims. The American Red Cross and professional mental health counselors are good sources of help in these situations.

PREPARATION OF BUSINESSES FOR DISASTERS

Many ways exist to assess whether a business is prepared for disasters or not. One good technique has been described by Judy Bell in her book Disaster Survival Planning. The author suggests that employees be asked the following list of questions. If they cannot answer them, the company should start to develop its disaster preparedness plan.

Location and Resource Information

Who will be in charge of administering first aid? Where are the utilities?

How are the utilities shut off? Who will shut the utilities off?

Who will determine the extent of business damage? Who will decide when to evacuate?

What equipment is critical to the practice/shelter/business? Where is the critical equipment located?

What are the hazards in the company?

How are employees protected from these hazards?

How will employees be protected against these hazards after a disaster?

What emergency first aid supplies are there in the company?

Where are the emergency first aid supplies?

How will additional supplies be provided after a disaster? Who will need to be contacted in a disaster?

How will these people be reached?

What communications are available in addition to regular telephone services?

What is needed to be able to use these?

Disaster Survival

Immediately after a disaster who needs to know what? How will you communicate the information?

How often will you need to update that information? For what vital functions is your business responsible?

Which functions play a critical role in restoring your business?

In what order do you perform these functions?

How will you determine who is injured and what their current condition is?

How will you contact the family members of employees to let them know that employees are okay or injured?

Who has special skills that can be used when a disaster strikes?

Who has special needs?

Who is trained in first aid, CPR, or other health support? Who should be trained in these areas?

Who is responsible for keeping your information correct? How frequently should this information be reviewed?

How will the business owner/manager know if the information is correct?

If an employer or employees cannot answer all questions meaningfully, a plan is needed, and the following chapters will be helpful.

ADDITIONAL READING

Algermissen ST, and others: A study of earthquake losses of the San Francisco Bay Area: data and analysis, Washington, DC, 1977, US Department of Commerce.

Arnold C: The Northridge earthquake of January 17, 1994. Small business: a sample of building damage, business disruption and recovery, Palo Alto, Calif, 1996, Building Systems Development, Inc.

Federal Emergency Management Agency: Emergency management guide for business and industry: a step by step approach to emergency planning, response and recovery for companies of all sizes, FEMA 141, Washington, DC, 1993, FEMA.

Mittler E: An assessment of the flood plain management in Georgia’s Flint River Basin, Program on Environment and Behavior Monograph #59, Institute of Behavioral Science, Boulder, 1997, University of Colorado.

Nigg JM, Tierney KJ: Explaining differential outcomes on the small business loan application process, Newark, 1990, Disaster Research Center, University of Delaware.

As stated throughout this book, disasters occur most commonly at the local level and common issues that arise in large-scale disasters are the same as those that occur in small-scale disasters. Therefore it is important that businesses in the animal care industry emphasize local disaster preparedness as their top priority. Local preparedness is essential for any animal health care business, be it a veterinary practice or a humane shelter, that wishes to provide services for the care of animals in disasters. The only functional practices and shelters that will exist after a disaster are those with good contingency plans before the disaster. Therefore for veterinary practices and animal shelters to become critical facilities in disasters they must have good local disaster preparedness plans.

GETTING INVOLVED IN DISASTER PREPAREDNESS

There are three levels of disaster preparedness in which businesses (i.e., veterinary practices, veterinary accessory stores, and animal shelters) in the animal care industry can become involved:

- Personal preparedness at work through emergency contingency planning in accordance with guidelines of the Occupational Safety and Health Administration (OSHA)

- Business preparedness through business resumption planning in the case of a major disaster

- Community preparedness as community leaders in veterinary emergency management for the care of animals and their owners in disasters. Such programs can be developed correctly only under the guidance of the local Emergency Management Agency (EMA). In this context veterinary practices and humane shelters should be considered critical facilities.

The three areas should be seen as sequential steps for becoming involved in disaster management programs. In particular, the types of problems that will occur in a veterinary practice, humane shelter, or pet and feed store in a disaster are likely to be the same as in everyday operations; they just occur on a larger scale.

Disasters do not create new conditions; they merely exacerbate existing ones. Therefore learning to deal with common problems that occur frequently and locally and are dealt with through local resources is the best way for groups to prepare themselves and their communities for large-scale disasters. Local disaster preparedness is also best because it follows the priorities of those who are permanently vested in the local community.

The steps for developing plans at all levels are the same:

- Conduct a risk assessment analysis.

- Identify critical functions.

- Conduct a vulnerability assessment.

- Prepare a plan and exercise it.

The American Red Cross (ARC) and Federal Emergency Management Agency (FEMA) summarize the reasons for disaster preparedness in businesses:

- It facilitates compliance with regulatory requirements of federal, state, and local agencies.

- It enhances a company’s ability to recover from financial losses, regulatory fines, loss of market share, damage to equipment or products, or business interruption.

- It reduces exposure to civil or criminal liability in the event of an incident.

- It enhances a company’s image and credibility with employees, customers, suppliers, and the community.

- It may reduce insurance premiums.

- It helps companies fulfill their moral responsibility to protect employees, the community, and the environment.

Occupational Safety and Health Administration and Disaster Preparedness

Meeting OSHA’s legal requirements is a good starting point for becoming involved in disaster management programs at all levels because the vast majority of issues that arise in disasters are the same as those that occur during everyday business.

To some, OSHA regulations may seem like an imposition, but they have evolved out of the experience that disasters and emergencies are a common cause of human injury in the workplace and that many of these can be prevented. OSHA requires a systematic approach to disaster preparedness for businesses. Complying with OSHA regulations is generally beneficial to companies in that compliance reduces the number of injuries to staff, the severity of injury when accidents occur, and the losses caused by business disruption and the consequences of litigation when procedures have not been followed. These are the goals of any business or community disaster preparedness program. Adaptation of the principles of human safety in emergencies, such as evacuations, can be readily adapted by animal health professionals to the care of animals.

Much of what is described in the following pages can be applied to individual small businesses as well as to chains and larger corporations. However, for corporations and chains to develop effective disaster preparedness plans, a commitment of time and resources is needed from the companies’ management. This commitment should allocate time and resources to identify the needs, develop plans, and implement them through employee training and repeated exercises in each of their businesses.

Getting Started

The priorities for business disaster preparedness are the same as for all disaster preparedness planning:

- Identify legal requirements and constraints.

- Assess hazards.

- Develop a plan based on highest risks (i.e., the most hazardous jobs and locations should be addressed first).

The details of how to comply with the law are beyond the scope of this book, but it is possible to summarize some important principles, explain their benefits, and provide some guidelines on how to accomplish them. Many dependable sources provide specifics on how to comply with the law. One of the first resources for veterinary practices to consult for the appropriate development of OSHA guidelines is their state veterinary medical association (VMA).

OSHA requires that all businesses with more than 10 employees have a written Emergency Contingency Plan (ECP). For businesses with 10 or fewer employees a written plan is not mandated but is highly recommended. The purpose of an ECP is to prevent accidents and injuries to people and if they do occur, to be able to control them effectively and reduce their impact.

OSHA regulations also require that employers protect their employees during and after a disaster. After a disaster the methods for OSHA compliance may change. These changes should be taken into account and may require new job descriptions for employees and different types and levels of insurance coverage.

Two areas of compliance are legally required by OSHA and apply to most animal care businesses. These are the ECP and the Hazard Communication Plan (HCP). After a disaster strikes, a business is first responsible for the safety of its employees and only then should focus on resumption and restoration of business.

Hazard Communication

Since 1987 OSHA has included in its Hazard Communication Standard businesses of all sizes in the United States. There are no minimum requirements for the number of employees that a business has to have to comply with this regulation. The Hazard Communication Standard is also known as the Right to Know regulations. (Community Right to Know regulations are discussed in Chapter 11.) Their relevance to businesses is that every employee has the right to know what hazardous chemicals are used and stored at the work site and what the potential risks of exposure to these chemicals are. For businesses to meet the Hazard Communication Standard, OSHA requires every business to prepare the following:

- A written Hazard Communication Plan. This plan must specify how the business will comply with the law and which employees have been assigned specific responsibilities.

- An inventory of every potentially hazardous material in the building.

- A current catalogue of Material Safety Data Sheets (MSDSs) for all hazardous materials in the building. This catalogue should be compiled at a single site in the building. MSDSs are generally supplied by the manufacturer of the product.

- Labels for all secondary containers. Secondary containers are those used to decant hazardous materials for direct use. For example, isopropyl alcohol is usually supplied in large glass containers but used from handy-sized plastic containers. The plastic containers are the secondary containers that must be labeled. (The original container most likely comes labeled from the manufacturer or supplier.)

- A means of ensuring that all employees know the ECP, the evacuation plan, where the list of MSDSs is located, and how to use it.

A Hazard Communication Plan should contain the following information:

- How hazardous materials are identified

- Who is responsible for making warning labels, labeling hazardous materials, and notifying all persons in the building about the materials and their potential hazards

- A description of the labeling system for containers and warning signs (these are often standardized pictures)

- Where the inventory and list of MSDSs are kept and how these are updated

- A description of the training program

An example of an MSDS is given in Fig. 13-2. All MSDSs should contain the following information:

- Chemical identification and product name

- Manufacturer name, address, and telephone number

- Hazardous ingredients

- Physical data (appearance and odor)

- Fire and explosive data (temperature at which substance will ignite or explode and how to extinguish it)

- Reactivity data (a list of conditions for materials that when mixed with the substance will cause a reaction)

- Emergency and cleanup procedures

- Protective equipment to use when handling the substance

- Special precautions

To reduce the severity of injury, equipment should be purchased to treat contaminated areas and exposed persons. This includes personal protective equipment, eyewash stations, alarms, fire extinguishers, and spill cleanup supplies.

Emergency Contingency Plan

The purpose of the ECP is to be prepared for any type of disaster. These could be natural disasters that affect many businesses and people in the area or small-scale disasters that affect only one business. Examples of common local disasters in practices and animal shelters are chemical spills, fires, and heating and cooling failure. These are also common in large-scale disasters. The emphasis of the ECP is for individual practices to be prepared. OSHA recommends that an ECP have a standard format in which each hazard is addressed separately and responsibilities are clearly designated and that staff and management be trained to an appropriate level of knowledge for each aspect of the plan.

An ECP should include a written evacuation plan and procedures for contacting the appropriate person in an emergency, such as natural disasters, hazardous material spills, transportation accident, injury to somebody at work, injury to clients, and danger of transmission of