Why You Always Get Your Bills, Even After A Natural Disaster

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When disaster hits, it destroys whatever is in its path, whether it's a private residence or a major bank that contains hundreds of thousands of financial records. But while it will take the homeowner months and even years to rebuild, he'll probably find that his credit card bills and monthly mortgage statement will continue to arrive with irritating regularity, whether he still has a mailbox or not. How is this possible?

Banks, mortgage companies, investment brokers, and other such institutions back up their records regularly and transmit them to remote locations in different states across the country for storage. Most government agencies, insurance companies and other large corporations also have a Continuity of Operations Plan in place. They make arrangements with a distant location, called a "hot site," which mirrors their primary facility, duplicating all computer equipment and data. That's why neither rain, nor earthquake, nor hurricane will prevent your bills from arriving.

Experts agree that even small businesses should have a Disaster Management Plan. Even if a natural disaster doesn't occur, something unexpected, such as the illness or death of the owner or a terrorist attack, can throw a serious wrench in the works.