Earthquake Preparedness for Businesses: Continuity Planning, Workplace Safety, and Recovery

Key Takeaways

• 72% of businesses without a continuity plan fail within 18 months of a major disaster — FEMA estimates that nearly half of small businesses never reopen after a significant disruption. An earthquake preparedness plan is a business survival plan.
• OSHA requires employers to provide a safe workplace, including emergency action plans for companies with more than 10 employees (29 CFR 1910.38). Earthquake preparedness is a legal obligation, not optional.
• Business continuity planning goes beyond physical safety — it includes data backup, supply chain redundancy, financial reserves, insurance, employee communication, and customer continuity.
• Every workplace needs an earthquake emergency kit — at minimum: first aid supplies, flashlights, water, a battery-powered radio, and basic tools for every occupied floor.
• Insurance alone won't save your business — standard commercial property insurance does not cover earthquake damage. Earthquake coverage requires a separate policy or endorsement.
• The first 72 hours after an earthquake determine long-term recovery — businesses that can communicate with employees, assess damage, and resume critical functions within three days have dramatically better outcomes.

Introduction: Why Businesses Can't Afford to Be Unprepared

Earthquakes don't distinguish between homes and offices. When the ground shakes, your business faces the same physical forces as any other structure — plus a set of challenges unique to commercial operations: employee safety across multiple locations, critical data and systems, supply chains, customer obligations, regulatory compliance, and the financial pressure to resume operations as quickly as possible.

The 2011 Christchurch earthquake in New Zealand permanently closed approximately 900 businesses in the central business district. The 1994 Northridge earthquake caused an estimated $20 billion in property damage (roughly $42 billion in 2024 dollars), with small businesses accounting for a disproportionate share of closures. In each case, the businesses that survived were the ones that had planned ahead.

This guide provides a complete framework for business earthquake preparedness: from the workplace emergency kit on every floor to the business continuity plan that keeps your company operational when the ground stops shaking.

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Business Earthquake Preparedness Checklist

Use this master checklist as your planning roadmap. Each item is covered in detail in the sections below.

Category	Task	Priority	Status
Employee Safety	Written earthquake emergency action plan	Critical	☐
	Earthquake drills at least 2x per year	Critical	☐
	Emergency response team designated and trained	Critical	☐
	Evacuation routes posted on every floor	Critical	☐
	Assembly area designated (away from building)	Critical	☐
	Employee emergency contact list current	Critical	☐
	Workplace earthquake emergency kits stocked	Critical	☐
	First aid kits and AED accessible	Critical	☐
	Employees with disabilities have individualized plans	Critical	☐
Building & Physical	Building seismic evaluation completed	High	☐
	Heavy furniture, shelving, and equipment anchored	High	☐
	Server racks and IT equipment secured	High	☐
	Gas shutoff location known, wrench accessible	High	☐
	Utility shutoff procedures documented	High	☐
	Hazardous materials properly stored and secured	High	☐
	Ceiling-mounted equipment checked for seismic bracing	Medium	☐
	Exit routes clear of obstructions	Critical	☐
Business Continuity	Business continuity plan documented	Critical	☐
	Critical business functions identified and prioritized	Critical	☐
	Data backup system in place (offsite/cloud)	Critical	☐
	IT disaster recovery plan tested	High	☐
	Remote work capability established	High	☐
	Key vendor/supplier contact list and alternatives	High	☐
	Critical paper records scanned and stored offsite	Medium	☐
Financial & Insurance	Earthquake insurance policy in force	High	☐
	Business interruption insurance reviewed	High	☐
	Emergency cash reserve (or credit line) accessible	High	☐
	Insurance policy details stored offsite	Medium	☐
Communication	Employee notification system tested	Critical	☐
	Emergency communication chain documented	Critical	☐
	Customer/client communication plan in place	High	☐
	Vendor/supplier notification plan in place	Medium	☐
	Media/public communication plan (if applicable)	Medium	☐

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Employee Safety: The First Priority

OSHA Requirements

The Occupational Safety and Health Administration (OSHA) sets the baseline legal requirements for workplace emergency preparedness. Key regulations include:

29 CFR 1910.38 — Emergency Action Plans: Employers with more than 10 employees must have a written emergency action plan that includes, at minimum:

• Procedures for reporting emergencies
• Evacuation procedures and emergency escape route assignments
• Procedures for employees who remain to operate critical equipment before evacuating
• Procedures to account for all employees after evacuation
• Names or job titles of employees to contact for plan information
• Alarm system that provides warning for emergency action

29 CFR 1910.39 — Fire Prevention Plans: Required in conjunction with the emergency action plan, covering potential fire hazards, fire protection equipment, and maintenance procedures.

29 CFR 1910.151 — Medical Services and First Aid: Employers must ensure the ready availability of first aid-trained personnel and first aid supplies.

While OSHA does not have a specific earthquake standard, the General Duty Clause (Section 5(a)(1) of the OSH Act) requires employers to provide a workplace free from recognized hazards, which includes seismic risks in earthquake-prone areas. Failure to prepare for foreseeable earthquake hazards can result in citations.

OSHA Emergency Action Plan Standard

Writing Your Earthquake Emergency Action Plan

Your earthquake emergency action plan should be a specific, actionable document — not a generic template. It should include:

1. Immediate response procedures:

• Drop, Cover, and Hold On protocol for all employees
• Specific instructions for different areas (office floors, warehouse, loading dock, parking garage)
• Procedures for employees with disabilities
• Protocol for employees who are off-site, traveling, or working from home

2. Post-shaking assessment:

• Who is responsible for building damage assessment?
• Decision criteria for evacuation vs. shelter-in-place
• Utility shutoff procedures and assigned personnel
• Hazardous material containment procedures (if applicable)

3. Evacuation plan:

• Primary and secondary evacuation routes for every floor/area
• Assembly area location and backup location
• Employee accountability method (roster check, badge scan, headcount)
• Procedures for visitors and contractors
• Re-entry criteria (who decides when the building is safe to re-enter?)

4. Communication plan:

• How employees are notified during the event (PA system, two-way radios, runners)
• How employees are contacted after the event (mass notification system, phone tree, text chain)
• Who communicates with emergency services
• Who communicates with senior management/ownership
• External communication (customers, vendors, media)

5. Emergency response team:

• Designated floor wardens/team leads
• Trained first aid responders
• Search and rescue team (for larger facilities)
• Damage assessment team

Earthquake Drills for Businesses

Drills are where plans become capability. FEMA and the Earthquake Country Alliance recommend that businesses in seismic zones conduct earthquake drills at least twice per year, with one aligned to the annual Great ShakeOut in October.

Drill progression for businesses:

Year 1	Year 2+
Announced Drop, Cover, Hold On drill	Unannounced Drop, Cover, Hold On drill
Announced evacuation drill	Evacuation with simulated complications (blocked route, simulated injuries)
Staff tabletop exercise	Full functional exercise with communication, accountability, and decision-making

After every drill: Debrief within one week. Document findings. Assign corrective actions. Update the plan.

Detailed guide to writing an earthquake emergency plan

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Workplace Earthquake Emergency Kits

Every occupied floor of your business should have an accessible, stocked earthquake emergency kit. The kit should be stored in a known, accessible location — not locked in a supply closet that requires a key nobody can find during an emergency.

Workplace Emergency Kit Contents

Item	Quantity Guideline	Notes
Water	1 gallon per employee for 1 day (minimum)	Store in sealed containers; rotate every 6 months
First aid kit	1 per floor, ANSI Z308.1 compliant	Include trauma supplies (tourniquets, chest seals) for larger workplaces
Flashlights	1 per 5 employees	LED with extra batteries; headlamps preferred for hands-free use
Battery-powered radio	1 per floor	NOAA weather radio capable
Whistle	1 per employee	For signaling if trapped
Work gloves	1 pair per 5 employees	Leather or heavy-duty; for handling debris
Dust masks	N95, 1 per employee	Earthquake debris creates hazardous particulate
Emergency blankets	1 per employee	Mylar space blankets; compact storage
Wrench	For gas shutoff	12-inch adjustable; stored near shutoff valve
Duct tape	2 rolls per kit	Versatile repair and sealing
Permanent markers	3–5 per kit	For triage, labeling, signage
Pry bar	1 per floor	For jammed doors or light debris
Fire extinguisher	Per code (typically 1 per 3,000 sq ft)	ABC type; check monthly
Sanitation supplies	Garbage bags, hand sanitizer, toilet paper	Assume plumbing non-functional
Employee roster	Current, printed	With emergency contacts; update quarterly
Building floor plans	Printed copies	Showing exits, utility shutoffs, hazmat locations
Portable phone chargers	2–3 per floor	Minimum 20,000 mAh each

Cost estimate: A basic workplace kit for a 20-person office floor runs approximately $200–$500, depending on quality and quantity. Industrial or warehouse kits with additional tools and heavy-duty supplies may cost $500–$1,500.

Maintenance: Assign a specific person (or rotate responsibility) to inspect kits quarterly. Check expiration dates on water, food, batteries, and first aid supplies. Verify flashlights work. Replace used items after drills.

Reviews of pre-assembled workplace earthquake kits

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Securing the Physical Workspace

Office Hazards and Mitigation

The same principles that apply to homes apply to offices — but at larger scale and with additional hazard types.

Hazard	Mitigation	Responsibility
Tall filing cabinets	Anchor to wall studs or connect cabinets together	Facilities management
Bookcases and shelving units	Wall-strap or bolt to structure	Facilities management
Overhead monitors/TVs	Use seismic-rated mounts	IT/Facilities
Desktop computers	Secure with Velcro straps or computer tethers	IT
Suspended ceiling tiles	Ensure grid is laterally braced per code	Building owner
Light fixtures (fluorescent)	Verify seismic clips and safety cables	Building owner
Glass partitions	Apply safety film to prevent shattering	Facilities management
Vending machines	Anchor to wall	Facilities management
Warehouse racking	Bolt to floor; use cross-bracing; lip guards on shelves	Operations
Hazardous materials	Store in approved seismic cabinets below shoulder height	Safety officer
Propane, compressed gas cylinders	Chain to wall or rack; cap when not in use	Safety officer

Warehouse and industrial-specific considerations:

• Heavy racking systems must be bolted to the floor and cross-braced. The Rack Manufacturers Institute (RMI) publishes seismic design standards for storage racks.
• Overhead cranes and hoists should have seismic restraints.
• Pallet loads on upper rack levels are high-risk projectiles in an earthquake.
• Chemical storage areas need secondary containment and seismic restraints.

Server Rooms and IT Infrastructure

For many businesses, IT systems are the most critical physical asset. Server room earthquake preparedness includes:

• Rack bolting: All server racks bolted to the floor with seismic-rated hardware
• Cable management: Overhead cable trays properly supported; cables with sufficient slack to accommodate rack movement
• UPS systems: Uninterruptible power supplies secured and rated for seismic loads; batteries strapped
• Cooling systems: HVAC units on seismic mounts; refrigerant lines with flexible connections
• Raised floor systems: Seismic-rated pedestal supports; avoid overloading floor tiles
• Fire suppression: Clean agent systems (FM-200 or Novec) properly anchored

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Business Continuity Planning

Earthquake preparedness for businesses extends far beyond physical safety. A true business continuity plan (BCP) addresses how your company continues to operate — or rapidly resumes operations — after an earthquake disrupts your normal business.

Business Impact Analysis (BIA)

The first step in continuity planning is understanding which business functions are critical and what happens when they stop.

Business Function	Maximum Tolerable Downtime	Dependencies	Recovery Priority
Example: Order processing	24 hours	ERP system, internet, staff	Critical
Example: Payroll	1 week	HRIS system, bank connectivity	High
Example: Marketing	2 weeks	Website, social media, staff	Medium
Example: R&D projects	1 month	Lab access, specialized equipment	Lower

Fill this out for your specific business. The functions with the shortest maximum tolerable downtime get the most planning attention and recovery resources.

IT Disaster Recovery

For most modern businesses, IT recovery IS business recovery. Key elements:

Data Backup Strategy:

Backup Type	Frequency	Location	Recovery Time
Full system backup	Weekly	Offsite/cloud (geographically distant)	Hours to days
Incremental backup	Daily	Offsite/cloud	Hours
Real-time replication	Continuous	Secondary data center or cloud	Minutes
Critical document backup	As created	Cloud storage (multiple providers)	Immediate

The 3-2-1 Backup Rule: Maintain at least 3 copies of critical data, on 2 different types of media, with 1 copy stored offsite (ideally in a different seismic zone).

Cloud vs. On-Premise Considerations:

Cloud-hosted systems have an inherent advantage for earthquake recovery — your data and applications are running in data centers that are likely geographically distant from your office. If your building is damaged, your cloud systems are unaffected. This is one of the strongest arguments for cloud migration in earthquake-prone areas.

However, cloud dependency creates a different vulnerability: if internet connectivity is disrupted (which is common after major earthquakes), you may lose access to cloud systems even though they're functioning perfectly. Plan for this by:

• Maintaining local cached copies of critical files
• Having offline procedures for essential functions
• Ensuring mobile hotspot capability as backup internet

Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO):

• RTO: How quickly must a system be restored? (e.g., email within 4 hours, ERP within 24 hours)
• RPO: How much data loss is tolerable? (e.g., zero for financial transactions, 24 hours for internal documents)

Document these for every critical system, then build your backup and recovery infrastructure to meet them.

Remote Work Capability

The COVID-19 pandemic demonstrated that many businesses can operate remotely. This capability is equally valuable for earthquake recovery. Ensure:

• Employees can access critical systems from home (VPN, cloud applications)
• Communication tools work independently of office infrastructure (Slack, Teams, Zoom — all cloud-hosted)
• Employees know the remote work activation procedure and have tested it
• Key employees have laptops they take home daily (not just desktop computers at the office)
• Virtual meeting and collaboration tools are standard practice, not just emergency measures

Supply Chain Resilience

Earthquakes don't just affect your building — they affect your suppliers, logistics providers, and customers. Supply chain preparedness includes:

• Identify single points of failure: Which suppliers or logistics routes have no backup?
• Develop alternative suppliers: For critical materials, have at least one alternate vendor qualified and ready
• Geographic diversification: If all your suppliers are in the same seismic zone as you, they'll be disrupted at the same time
• Inventory buffer: For critical inputs, maintain safety stock that can bridge supply disruption
• Communication plan: How do you notify suppliers and customers of disruption? How do they notify you?

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Insurance for Businesses

Standard Commercial Property Insurance Does NOT Cover Earthquakes

This point bears repeating because it catches many business owners by surprise. Standard commercial property insurance policies — the kind virtually every business carries — explicitly exclude earthquake damage. If an earthquake damages your building, inventory, equipment, or forces you to close, your standard policy will generally not pay.

What You Need: Earthquake Insurance

Earthquake insurance for commercial properties is available as a standalone policy or as an endorsement to your existing commercial property policy. Key coverage components:

Coverage Type	What It Covers
Building damage	Structural repair or replacement of the building
Business personal property	Equipment, inventory, furniture, fixtures
Business interruption	Lost income during closure/reduced operations
Extra expense	Additional costs to maintain operations (temporary space, equipment rental)
Debris removal	Cost of clearing damaged building materials
Code upgrade	Cost to rebuild to current (not original) building code

Key Policy Features to Understand

Deductible structure: Earthquake insurance deductibles are typically percentage-based, not flat-dollar. A 5% deductible on a building insured for $2 million means a $100,000 deductible — you pay the first $100,000 of damage out of pocket. Deductibles of 5%–15% are common; some policies offer deductibles up to 25% for lower premiums.

Waiting period for business interruption: Most policies have a 72-hour to 2-week waiting period before business interruption coverage begins. Understand your policy's waiting period and plan your cash reserves accordingly.

Sublimits: Some policies cap certain coverage types (e.g., debris removal, code upgrade) at a sublimit below the total policy limit. Review these carefully.

Premium factors: Building construction type, age, location, seismic zone, retrofit status, soil type, and building occupancy all affect premiums. A retrofitted steel-frame building in a moderate seismic zone may pay far less than an unreinforced masonry building in a high-risk area.

SBA Disaster Loans

After a federally declared disaster, the U.S. Small Business Administration (SBA) offers low-interest disaster loans to businesses:

• Business Physical Disaster Loans: Up to $2 million to repair or replace damaged property, equipment, inventory, and fixtures
• Economic Injury Disaster Loans (EIDL): Up to $2 million for working capital to meet financial obligations that could have been met had the disaster not occurred

These loans are not grants — they must be repaid. But at subsidized interest rates, they provide critical bridge financing for businesses that might otherwise close permanently.

SBA Disaster Assistance Programs

Complete guide to earthquake insurance options

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Employee Communication: Before, During, and After

Before an Earthquake

• Include earthquake procedures in new employee onboarding
• Conduct annual refresher training for all employees
• Distribute wallet-sized emergency information cards (assembly point, emergency contacts, notification system instructions)
• Test your mass notification system at least twice per year
• Collect and maintain up-to-date employee emergency contact information

During an Earthquake

Communication during shaking is limited to the immediate verbal command: "Earthquake! Drop, Cover, and Hold On!" After shaking stops, communication follows the ICS structure:

1. Floor wardens report status to their supervisor
2. Supervisors report to the building emergency coordinator
3. Emergency coordinator makes decisions (evacuate, shelter, shut down utilities)
4. Decisions communicated via PA, radio, and runners

After an Earthquake

Timeframe	Communication Task	Method
0–1 hours	Employee accountability check	In-person roll call at assembly area
1–4 hours	Status update to all employees (including those off-site)	Mass notification system (text + email)
4–24 hours	Facility status and return-to-work timeline	Email, company website, phone hotline
1–7 days	Ongoing operational updates	Daily email updates, intranet, team leads
1–4 weeks	Recovery timeline and expectations	Company-wide communication, team meetings

Designate a single source of truth for post-earthquake updates (company website, specific email address, or phone hotline). Confusion multiplies when employees get conflicting information from multiple sources.

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Post-Earthquake Building Assessment

After a significant earthquake, you cannot simply walk back into your building and resume operations. A structured damage assessment is required.

Immediate Assessment (by trained building emergency team)

Before anyone re-enters, conduct an external visual inspection:

• Are there visible cracks in exterior walls?
• Is the building visibly leaning or shifted?
• Are there fallen facades, broken glass, or debris?
• Do you smell gas?
• Are there downed power lines near the building?

If any of these are observed, do not enter. Call emergency services and wait for professional assessment.

Professional Assessment

For anything beyond minor damage, engage a licensed structural engineer or building inspector. In many jurisdictions, local building departments deploy rapid assessment teams (using ATC-20 procedures) to inspect buildings after significant earthquakes and tag them:

Tag Color	Meaning	Action
Green (Inspected)	No apparent structural hazard found	Normal occupancy permitted
Yellow (Restricted Use)	Damaged; limited entry permitted	Entry for specific purposes only; conditions noted on placard
Red (Unsafe)	Extreme hazard; imminent danger of collapse	No entry; secure the building

Do not re-enter a building that has not been inspected after a damaging earthquake, even if it looks fine from outside. Some structural damage is hidden.

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Financial Preparedness

Emergency Cash Reserves

FEMA and the SBA both recommend that businesses maintain accessible emergency reserves. The amount depends on your operating costs, but a common guideline is three to six months of fixed operating expenses. At minimum, maintain enough cash to cover payroll, rent, and essential vendor payments for 30 days without revenue.

Pre-Established Credit Lines

A business line of credit established before a disaster provides immediate access to capital when you need it. After a disaster, lending standards often tighten and the process slows. Set up your credit line during normal operations.

Financial Record Protection

Ensure critical financial records are accessible after an earthquake:

• Tax returns (minimum 7 years) stored digitally offsite
• Insurance policies stored in multiple locations (office, home, cloud, safe deposit box)
• Bank and investment account information accessible remotely
• Accounts receivable and payable records backed up
• Payroll records and employee information backed up

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Industry-Specific Considerations

Retail Businesses

• Secure display shelving, merchandise racks, and point-of-sale equipment
• Ensure exit routes around merchandise displays are wide enough for emergency evacuation
• Train staff on customer evacuation procedures
• Secure overhead signage and hanging displays
• Consider inventory insurance and spoilage coverage (for perishable goods)

Restaurants and Food Service

• Secure gas cooking equipment with flexible connectors
• Anchor walk-in coolers and freezers
• Strap water heaters and boilers
• Secure overhead pot racks
• Store heavy cookware and dishes on lower shelves
• Train staff to immediately turn off gas burners during shaking
• Plan for food spoilage if power is lost for extended periods

Manufacturing

• Secure all heavy machinery to the floor with seismic-rated anchors
• Implement automatic shutoffs for hazardous processes
• Store chemicals in approved seismic cabinets with secondary containment
• Cross-brace storage racks; install lip guards on shelves
• Review overhead crane and hoist seismic restraints
• Maintain emergency shutoff procedures for all processes

Healthcare

• Secure all medical equipment, particularly heavy imaging equipment
• Ensure pharmaceutical storage meets seismic standards
• Maintain emergency generator with adequate fuel for extended operation
• Have plans for patient evacuation (including bedridden patients)
• Coordinate with local emergency management for surge capacity planning

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Resources

Resource	Provider	URL
Business Emergency Planning	Ready.gov (FEMA)	Ready.gov Business
Disaster Preparedness for Businesses	American Red Cross	Red Cross Earthquake Preparedness
SBA Disaster Assistance	U.S. Small Business Administration	SBA Disaster Loans
OSHA Emergency Action Plans	OSHA	OSHA 29 CFR 1910.38
Great ShakeOut Drill Resources	Earthquake Country Alliance	ShakeOut for Businesses
Earthquake Hazards Information	USGS	USGS Earthquake Hazards Program
Business Continuity Planning Suite	FEMA	FEMA BCP Resources

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Sources

• Federal Emergency Management Agency (FEMA). "Business Emergency Planning." Ready.gov Business
• FEMA. "Business Continuity Plan." FEMA BCP
• Occupational Safety and Health Administration. "Emergency Action Plans — 29 CFR 1910.38." OSHA Standard
• U.S. Small Business Administration. "Disaster Assistance." SBA Disaster
• American Red Cross. "Earthquake Safety." Red Cross Earthquake Safety
• United States Geological Survey (USGS). "Earthquake Hazards Program." USGS Earthquakes
• Earthquake Country Alliance. "ShakeOut for Businesses." ShakeOut Business Resources
• FEMA. "Rapid Visual Screening of Buildings for Potential Seismic Hazards: A Handbook (FEMA P-154)."
• Applied Technology Council. "ATC-20 Post-Earthquake Safety Evaluation of Buildings."

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