3 tips to help protect your business against underinsurance
Having the right insurance policy is essential to help protect your business from any unexpected losses. Physical assets can replaced, but this takes time, and while this happens, there can be a devastating impact on trading that can last for years. Business Interruption Insurance (BI) is essential for your business.
However, having a BI policy does not always mean you are fully protected.
Creating or improving your existing business continuity plan (BCP) can help ensure you can get things back on track quickly. There are two important parts you should consider:
- Disaster recovery (DR) plan
The main focus of a DR plan is around restoring IT infrastructure and operations after a disaster. Communications are key when recovering from disaster. With computers, phones and tablets being the main form of communication in an organisation, it is paramount that a DR plan is put down on paper and reviewed regularly. This plan should include all contact details (not just internal) of key members of staff.
- Business impact analysis (BIA)
Where a DR plan focuses on IT, a BIA looks at the rest of the business functions. BIA is used as a way of calculating the impact (cost) when there is an unexpected loss of function within the business. This will help identify the key pillars of your business that will be most affected in terms of affecting your business.
As well as ensuing your business has an effective BCP, we have provided three tips to help you avoid underinsurance.