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In recent years, the U.S. has experienced some of the worst hurricanes, tornadoes, wildfires and flooding in its history. Statistics show that one in four businesses that close due to a disaster never reopen.
As a business owner, what can you do to protect yourself and your business? The answer is putting together a business continuity plan.
According to the Insurance Institute for Business & Home Safety, a business continuity plan helps put your company in a better position to recover from the business interruption, property damage, financial impact, and loss of life that a natural disaster or man-made event may cause.
Do You Think Your Business Can Withstand A Disaster?
It does not take a major catastrophe to shut down a business. In fact, seemingly minor disruptions compared to widespread natural disasters can often cause significant damage – power failures, broken water pipes, or loss of computer data. But having a plan in place, combined with proper business interruption insurance, can help your small business withstand and recover from any kind of disruption.
There are six general steps involved in creating a business continuity plan:
- Identify the scope of the plan.
- Identify key business areas.
- Identify critical functions.
- Identify dependencies between various business areas and functions.
- Determine acceptable downtime for each critical function.
- Create a plan to maintain operations.
Download a free business interruption plan toolkit here.
Incorporating Business Interruption Insurance into your plan can keep capital flowing through your company in the event of such disruptions. This coverage helps a business owner to recover in time of need, by providing insurance protection for lost rents, income and sales during a period of the business being closed.
Remember, planning for a disruption or catastrophic event should happen when business is going well, not when disaster strikes. Having a pre-defined, well-documented business continuity plan that communicates how your business will respond during an event can help mitigate risk – and is one of the best investments your company can make.
Contact LG Insurance Agency to learn more about Business Interruption Insurance and planning ahead for the unknown.
All content provided in this blog is for informational purposes only. Topics discussed on this blog relate to insurance products and issues in a general application, and are not an offer of insurance, a guarantee of coverage, or applicable to specific and individual circumstances. Contact LG Insurance Agency for questions and information specific to your insurance needs.
