When you manage a business, you're presented with new challenges everyday and you learn over time to be prepared for anything that comes your way. On top of common disruptions such as technology loss, supply chain failure, machinery breakdown, and employee absenteeism, extreme weather events are happening more and more frequently.
One thing many companies are not prepared for, however, is how an unexpected disaster can affect both short and long-term business operations. That is where a business continuity or disaster recovery plan comes into play.
Business continuity is all about being proactive. This requires a company to take into account all aspects of their organization to determine where potential issues may arise. Developing that continuity plan will not only help to prevent business interruptions, but also assist a company in identifying inefficiencies and redundancies. Taking a proactive approach means reviewing business processes, potential exposures, and current insurance policies to ensure you're covered from every angle or at least aware of areas where you lack protection.
Another aspect of this is business interruption insurance, which can help you get back up and running after a disaster and help keep your cash flow going. It also assists with marketing and PR after your loss, keeping the bills paid, some repairs, and resuming critical operations. It is key to recognize however, that insurance is a reactive tool which needs to be reviewed regularly with your broker to identify new trends and potential gaps in coverage as well as ensure you maintain adequate limits. Having a proper insurance program in place is only one aspect of your whole business continuity plan, which should start with limiting exposures and identifying inefficiencies in your organization.
Contact a CapriCMW Risk Advisor for more information or resources.