What is a Business Continuity Plan?

What is a Business Continuity Plan? from Insurance Experts

By: Insurance Experts  24/09/2015
Keywords: business, insurance, blog

What is a Business Continuity Plan? What is a business continuity plan? A business continuity plan is a formal strategy put in place to reduce risks posed to a business – thereby potentially lowering the operation’s insurance premium. Depending on the size of the business and the nature of the risks, this saving could be substantial and well worth the time and cost required to implement. A business continuity plan – sometimes known as a disaster recovery plan – details how a business would manage if one or more serious unwanted events affected it. For example, how would they cope if a major fire occurred? Or if there is a supply chain interruption? Or an emergency? These questions are answered with a view to keeping the operation running with minimal downtime, while ensuring that all employees are safe. Such a plan can go into substantial detail as regards to what happens to a business during a crisis. Where do the employees go in a given situation? What is the fire procedure? What happens in the event of a power cut? If physical or digital records are destroyed on the premises, how do employees keep track of who owes your business money? How do you keep track of customers? This list is not exhaustive and needs to take into account each businesses particular circumstances A good, in-depth business continuity plan also asks some tough questions: what happens if key personnel die? Who takes over? As far as insurance providers are concerned, a business continuity plan addresses all the key risks posed to a business. Since such a plan has real-life practical applications, as well as the potential to reduce insurance premiums, it is arguably something that all businesses should take seriously. For honest, open, and objective advice about business insurance, give us a call on 01245 500433.

Keywords: blog, business, business continuity, help, insurance