Every business is vulnerable to disruptions. Most companies have taken steps to mitigate the impact of major hazards, but many have neglected smaller, more probable perils such as inadequate fire protection, missing offsite data backups, the death or disability of key personnel, or over-reliance on a small number of vendors.
While you can transfer many risks that could disrupt your business to insurance companies through coverages like Business Interruption and Extra Expense policies, insurance alone probably won’t be enough to ensure the company survives or continues long-term growth and profitability. For guidance on insurance options that support continuity, see Protecting Your Business with Continuation Insurance.
Three key steps
- Pre-disruption planning. Assess the risk and threat environment of your business and take steps to reduce hazards and shore up weaknesses.
- Disruption response. Losses depend on how effective your emergency plans are; respond with a coordinated, methodical approach to incidents.
- Post-disruption recovery. Recovery focuses on rebuilding and restoration so that crucial activities can continue with minimal interruption.
Your business continuity plan should not be a one-time project that ends when a plan is written. It should be an ongoing program to design, develop, implement, and maintain a company-wide strategy to keep your operations running effectively.
Many companies also combine planning with specialized coverages and recovery services. To learn more about options that help restore operations after a loss, see Protecting Key Employees and Business Insurance.
If you'd like help evaluating risks or putting a tailored Business Continuation Plan in place, ask an agent.
Frequently Asked Questions
What is a Business Continuity Plan (BCP)?
A BCP is a set of processes and procedures that helps a business continue operations during and after a disruptive event.
How is business interruption insurance different from a BCP?
Insurance can provide financial recovery after a loss, while a BCP focuses on preventing interruption and restoring operations quickly.
How often should a BCP be updated?
Review and test your plan at least annually or whenever you have significant operational, personnel, or technology changes.
Who should be involved in creating a BCP?
Include leaders from operations, IT, HR, facilities, and any department critical to daily business functions.