Don’t Forget To Test Your Business Continuity Plan
According to a recent survey of over 500 midsize business owners and C-level executives in the US, 59% had a formal, documented business continuity plan and 33% had an informal, verbal plan. 8% had no plan. Of those businesses with continuity plans, only 19% had actually tested them. (source: The Hartford)
Additionally, the survey found 36% of midsize businesses had been unable to meet a client need due to an interruption in operations. 9% of these businesses lost clients who did not return.
While most standard business insurance policies cover loss and damage to tangible items – equipment, inventory and an office, store or warehouse – business interruption insurance covers among other things, lost profits in the event your business is unable to operate. A solid business continuity plan can make the difference between losing, and rebuilding your business following an unplanned event.
Your KMRD Partners relationship manager can help determine your proper business interruption and extra expense coverage limit. You can begin by examining all the costs you would continue even if your business couldn’t operate, while also noting charges that might cease.
It is important to remember your interruption and extra expense coverage will mirror what is covered in your main business policy. If you didn’t include flood coverage in your general flood insurance policy, for instance, you won’t have interruption coverage for flooding, either.
KMRD reduces the overall cost of risk by producing a greater value for each commercial insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution.
We are dedicated to the mitigation of risk, risk control and claims advocacy, while helping firms recover from unplanned events that wait on the other side of one minute from normal.
Contact us below to have a KMRD risk management expert design or test your business continuity plan.