When I started in insurance, I discovered how important the old saying, “You’re only as good as your Plan B”, really is. A well thought out practical plan can mean the difference between coping with a disaster and going bust.
And there you have it, the harsh reality to owning any business is one of survival. The line between life and death is, well, a pretty fine line. The simple fact is that there are a hundred and one things that can disrupt a business and although you can never alleviate all threats, there are ways to help prevent problems before they occur, even the indirect threats like disruptions to your supply chain from a natural disaster.
So what does it take to create a Business Continuity Plan? First, identify the special hazards that your business may face so that you can develop a way to respond. Some of the most common hazards are dangerous materials, technical emergencies, fires, floods, winter storms, and earthquakes.
Your next step is to implement a business continuity plan addressing each hazard. Implementation means more than simply exercising the plan during an emergency. It means acting on recommendations made during the vulnerability analysis, integrating the plan into company operations, training employees and evaluating the plan.
What else? One thing I’ve encountered is the common misconceptions about insurance that weaken a plan. Most often, business owners:
- Underestimate the amount of insurance required
- Do not understand the impact of “co-insurance” clauses
- Do not have his or her insurance broker review their lease
- Underestimate the Period of Indemnity
- Buy the wrong type of Business Interruption coverage
Seem like a lot? It kind of is… there is a bit of work involved in proper planning but I can guarantee it will be worth it. If you need any help, we have a lot of experience and resources to help you. Hey, it’s all good. Don’t hesitate to give me or your broker a call and we’ll get that awesome Plan B rolling and maybe help you sleep a little better.