Business Continuity Planning is an essential part of business planning. The ability to recover from a disaster is the key to survival. That’s why you need a well thought out business continuity strategy.
While you may have business interruption insurance, you need to understand that you are dealing with much more than the financial loss. Insurance may cover costs but you also need a strategy to get operations back to normal.
A Business Continuity Plan considers everything that needs to be done and defines realistic indemnity periods and additional costs needed to restore earning capacity.
Regardless of whether it’s a man-made or a natural disaster, if your business is extensively damaged, it will usually disrupt your ability to operate. Australian statistics indicate that over 40% of businesses closed by a disaster never reopen.
What Is a Business Continuity Plan?
A Business Continuity Plan creates a blueprint to return your business to pre-disaster levels as quickly as possible. The goal is to decrease the impact and make sure that the company survives.
A good Business Continuity Plan includes:
- Identifying pre-set arrangements that are needed to get vital operations going again and have them on “stand-by.” This can be the key to getting back to business.
- Ensuring the availability of resources, including workers, equipment, finances, services, information, and accommodations. This can make all the difference if you are dealing with a disaster.
- Assuring your client’s needs are taken care of until your business is restored. This is not the time to lose customers.
The thought of creating a Business Continuity Plan may be a little intimidating but it might be the most important planning you do. If you need help talk with your business broker at Insurance House.