Businesses that recover quickly are those that plan in advance. This involves not only purchasing the right insurance, but also developing and maintaining an adequate recovery plan.
Minimise the risk of damage in advance of an emergency by:
- Training employees in fire safety
- Testing and if necessary modernising the electrical system
- Implement updated housekeeping methods
- Prepare redundancy procedures where possible, for example, secondary internet connection, power backup generator etc.
- Carefully control any hot works – grinding, welding, cutting etc
- Identifying alternative locations to operate from should your premises be untenantable for a period of time
- Situating your business in a fire-resistant building - a structure made of non-combustible materials with firewalls that create barriers to the spread of fires - and in a building with a fire alarm system connected to the local fire department. It is also a good idea to have a sprinkler system to douse fires.
- Limiting storm-related damage by making sure the building conforms to damage-resistant building codes
- Keeping up-to-date triplicate records of both electronic and written records
- Identifying the critical business activities and the resources needed to support them in order to maintain customer service while your business is closed for repairs
- Planning for the worst possible scenario. Do research before a disaster strikes by conducting scenario testing
- Setting up an emergency response plan and training employees how to execute it
- Compiling a list of important phone numbers (including cell phone numbers) and addresses, including local and state emergency management agencies, major clients, contractors, suppliers, realtors, financial institutions, insurance broker/adviser and loss management expert. The list should also include employees and company officials. Keep copies off the premises in case the disaster is widespread. Ideally a copy should be kept on the net using a service such as ContinuityCoach
- Develop a communications strategy to prevent loss of your customers
- Review and exercise your plan on a regular basis and communicate changes to key employees
To learn more about Business Continuity Management Planning go to LMI ContinuityCoach
Whilst recovery rates vary, what is undeniable is that a Business Continuity Management Plan (BCP) will:
- help improve the chance of survival
- reduce revenue loss
- reduce downtime
- opportunistically improve efficiency and costs
- provide a competitive advantage
- make your business more attractive to Insurers
LMI ContinuityCoach is modelled on ISO 22301, an international standard for Business Continuity Management Systems and is designed to be used as a self-service.