Explore What's In Store for Your Records

By Michelle Simonelli - Reprinted from Contingency Planning & Management Magazine

Nobody wants to be a pack rat. But in the business world, there are some documents and data, like medical claims, insurance, legal, and financial documents, that simply cannot be discarded right away.

Space constraints and the lack of daily usage means most companies will store their records off-site. To find the appropriate records storage option, you have to assess what your business and your records require. Paper documents and electronic media have different storage requirements. Location, security, transportation, and handling are all factors in the decision-making process. And pricing is always a concern, particularly when operating within the confines of a limited budget.

Although it may seem that finding a safe haven to store corporate records is not mission-critical, think again. Most companies make their living from the data and information they create and collect. While these records may not need to be at your fingertips every day, they are still an important part of your business. The minute a record is needed you'll be thankful you took proper care of them.

Paper or Electronic?

Before you choose an off-site facility in which to house your records, you need to determine which records should be kept there. The type of records, paper documents or electronic media (CDs, magnetic tapes, cassettes, or disks), will be significant in determining how and where you will want to store them.

Todd Sperber, president and CEO of Sacramento, CA-based Vanguard Vaults, says there are different considerations to account for when storing various types of media. When dealing with electronic media, temperature and humidity controls must be in place at the facility, according to Sperber. These controls are needed to ensure that the media is not damaged via external conditions. G. J. Pierman, chief operating officer at Moses Lake, WA-based Titan World Class Safe Site, says heating and ventilation are also concerns for magnetic media.

Appropriate fire measures must also be enacted. The records storage service provider should have "a fire suppression system in place that is in line with the media being stored," Pierman adds. Electronic media typically needs a halon-like fire suppression system for proper protection. Also check that the vaults the electronic media will be stored in are fireproof, Sperber adds.

Due to the sensitivity of electronic media, cleanliness is an important part of keeping records in good working condition. Look out for static electricity, which can have a negative impact on this form of media. Inquire into how the vaults are cleaned, as a regular vacuum can create static electricity, Sperber says. You will also want to make sure that there is no carpeting, as this can also create static electricity, he adds.

While there are concerns for paper documents as well, Pierman says that paper documents are not quite as volatile as documents stored in an electronic format. However, there are still some points to keep in mind. Ensure that the area where your paper records will be stored is well organized. This can help you "to retrieve boxes quicker and decrease the chances of records being lost or mishandled," says Sperber.

The proximity of the records storage facility to your corporate location will also differ based on the media being safeguarded. If paper documents need to be protected, the records storage facility should be close enough for records to be delivered on a next-day basis, according to Joseph Nezi, vice president of sales and marketing at King of Prussia, PA-based Piercy Leahy.

Facility Factors

Facility issues to consider, regardless of the type of media being stored, include a site inspection, location, and accessibility. A tour of all facilities under consideration should be high on your to-do list, according to Ron Harper, president of Norcross, GA-based Recall North America. "It's important that the storage solution meet your specific needs," Pierman says. A visit will help confirm that those needs are being met.

While some records may need to be close at hand, industry experts suggest that others should be maintained at a considerable geographic distance from your location. If a regional disaster strikes, it will not impact the records you have stored off-site, Pierman says.

Pay attention to surrounding businesses as well. Kevin Koski, vice president of technology, research, and development at Boston, MA-based Arcus Data Security, says the records storage facility chosen should not be near any railroad lines or airports. If these transportation modes are nearby and experience a disaster, their disruption may overflow and impact your records storage company as well.

Make sure the facility is a stand-alone building so that a neighbor's disruption will not automatically become your own, Pierman adds. The structure should be composed of solid materials to withstand potential disruptions such as a fire, flood, or earthquake. Nezi suggests using a facility of concrete construction with concrete floors. He also advises checking for the installation of sprinkler systems.

Find out if the records storage facility is open on weekends and if you can obtain access after hours, Sperber says. Since a disruption can occur at any time, you'll want to know that you can get to your records at once.

Your records storage vendor's services must keep up with your demands for immediacy. Inquire into whether the provider can make copies of records and fax them to you, and ask if rush deliveries are possible, Sperber says. If the documents you are storing are more likely to experience low activity, you may want to find out whether the service provider can shred your records once they no longer need to be retained.

If you occasionally want to look at some records on site, ask if there is a separate room in the facility where you can do this, Sperber adds. The records storage provider you choose should be able to take care of all of your needs, no matter how big or small.

A Good Track Record

Your requirements for a records storage facility should not overlook areas such as security, transportation, and coding systems. These elements are crucial to keeping your records safe. Inadequate procedures in any of these areas could possibly result in your media being lost, mishandled, or stolen.

Although there are no records storage security standards, industry experts say it is advisable for the storage provider you select to have some security measures in place. Intrusion detection alarms are a good starting point, according to Nezi. Make sure the alarm systems used are redundant, "so if one fails there's another to back it up," Koski says. If you will be storing highly sensitive materials you may want added security measures such as cameras, he adds. "The more that's offered, the better," Sperber says.

Less obvious concerns include the appearance of the storage facility and the other contents that will be sharing space with your records. Sperber says businesses may want to see if the records storage facility blends into its surrounding environment. The less attention that is drawn to the building and what it houses, the better, he explains. You may also want to verify that your service provider is solely dedicated to storing records. Sperber says storage providers have been asked to house items such as paintings and jewelry. If the vendor accepts such items, it may entice the common criminal to the facility, putting your records in harm's way.

The organization of your records is another concern. If your records are not assembled in an orderly fashion, you may have difficulty getting the ones you need when a disruption strikes. When touring the facility, "check to see if there are thousands of boxes on the floor; is there mayhem?" Harper says. Witnessing a disorganized facility first-hand can be a quick signal to look for a different service provider. Another way to make sure that your records are organized is by inquiring into the coding system that your service provider will be using. Many vendors utilize barcode systems to track records.

Steven B. Wright, vice president of Pittsburgh, PA-based Business Records Management, says companies should insist on a barcode system because of the tracking capabilities it allows. Harper also feels that a barcode system is a must-have. "If the potential vendor doesn't have barcodes it's time to move on," Harper says. There are some vendors that code by hand, but Sperber warns that human error could occur with this method. "Whatever coding system is used by the records storage service provider needs to meet the client's needs and be flexible," Pierman says.

Coding systems are particularly important for paper records, according to Nezi, as the system is also used for organizational and retention purposes. An default can also be used to signify the contents of each box, making it easier to pull records when requested, he adds. But Wright says some customers may not want their records defaulted because they want to retain the privacy of what they are storing. In these instances the company will typically give the service provider the barcode number of the item they need to have pulled, Wright explains.

From Here to There

Packing your records correctly aids in getting them prepared for a move from one location to the next. The storage containers that will be used will depend on the type of media being transported. According to Nezi, electronic media should be placed in plastic tubs and paper documents in cardboard boxes. Some electronic media are also transported via metal carts or containers. The containers used for the electronic media should have padding inside them, according to Sperber. This padding will prevent the media from being jostled around during its transport.

While some businesses express concern over transporting electronic and paper media in the same vehicle, Nezi says this should not be a problem as long as the proper procedures and security measures are used for the media. It can also save your company some time and money by having one combined delivery instead of two separate ones.

Transportation to and from the records storage facility must be handled properly. Pierman says transportation "is a weak link in the process," as records become vulnerable to outside elements. All drivers should be professionals that were previously screened by the service provider, according to Pierman.

Companies should feel comfortable that the driver that will be handling their materials is efficient and knowledgeable about his/her responsibilities, Harper adds. Wright says businesses should also ensure that the service provider performs thorough checks on all of its drivers. These can include criminal, motor vehicle, credit history, reference, and education checks. Some vendors also have their drivers take drug tests.

A variety of vehicles are used by records storage providers when transporting media. These include vans, box trucks, straight trucks, and sport utility vehicles, according to Wright. Whatever vehicle is used, it should have the proper controls in place to accommodate your records. Temperature and humidity controls will be needed for electronic media, Nezi says. Proper fire extinguishers should also be in place.

The security of your records must also be accounted for when they're on the road. There should be an enclosed loading area for records to be put onto the vehicles to prevent people from seeing what's going on, Koski says. The vehicles should also be unmarked, he adds. If large quantities of your records are being moved, find out if the service provider will have a chase vehicle following, Pierman says. This extra vehicle will serve as a backup and can offer some piece of mind to your business.

Vehicles should be equipped with stand-alone cellular telephones or a two-way radio, according to Sperber and Wright. These devices can be particularly useful in helping the driver to maintain communication with their company in the case of a traffic accident, a break down, or a wrong turn.

Sealing the Deal

One of the primary reasons many businesses obtain records storage services is for contingency planning purposes. So it is important that you make sure the service provider you select has contingency plans of its own.

"It's important that the records storage provider have a well-defined disaster recovery plan for daily operations and for significant [regional] disasters," Nezi says. This should include plans for data, systems, and voice recovery, he adds.

You may also want to inquire into some of the details of the plan, such as the vendor's alternate site options. While some service providers use hotsites, Wright says it is also good to find out if the vendor has some other locations/facilities of its own that it could possibly use for backup purposes.

According to Harper, the records storage provider should have two types of contingency plans in place -- a local site-level plan and a corporate plan. The local site-level plan is the contingency plan for one specific records storage facility, while the corporate plan is the contingency plan that the records storage provider has in place at the corporate level to assist any of its facilities when they experience a disruption.

But it is not enough for the potential service provider to simply have a contingency plan in place. Testing of the plan is also critical. Sperber says businesses should ask the service providers under consideration if their plan has ever been tested, when it was tested, and how it was tested. Asking about testing can help ensure that the records storage provider's contingency plans will work when put into action.

When shopping for any type of contingency planning service you will need to account for pricing. And there are numerous factors that can contribute to a records storage price tag. This includes the length of time the media is being stored and the quantity of records, according to Pierman and Koski. The type of media being stored and the environment it needs to be housed in will also be cost factors, Nezi says. There will also be activity charges to account for, according to industry experts. In other words, companies are charged more for records that they pull semi-regularly as opposed to those records that are primarily stored for archival purposes.

To enter into an agreement for records storage services, a contract must be signed. Be sure to have performance criteria such as data integrity and on-time deliveries built into the contract up-front, Nezi says. Other fees associated with a contract, according to Pierman and Sperber, include an early termination fee if the contract ends prematurely and a permanent removal fee for when your records are permanently relocated to another facility. Other fees include those for pickups and deliveries and specialized reports, Wright adds. Harper suggests researching price considerations prior to signing a contract.

Contracts can range from one to 10 years. The best length to go with will depend on your company's specific requirements. Pierman suggests using a short-term contract to allow flexibility. But Wright warns that a short-term contract will cost more than a lengthier one. Regardless of contract length, Sperber says you should "set in stone the percentage of price increase for each year" of the contract in advance. This allows your company to budget for the increase and keeps the vendor from price gouging. Harper agrees, stating that it's better to research your pricing considerations prior to signing a contract so that you can lock in the cost at the time the deal is inked.

The information records contain help keep businesses fully functional. Finding a safe place for their storage will ensure that the documents will be available for future use, which could play a large role in securing your company's future as well. So when it comes to mission-critical documents, go ahead and be a pack rat-the very livelihood of your business may depend on it.