Business owners do not want to experience an event that could delay daily operations or shut them down completely. Surprisingly, few business owners have plans to deal with such a disaster. Often disaster plans are overlooked and are not established until after the loss occurs. Often even companies that do have disaster plans in effect fail to update their plans on a regular basis. Not only is is important to have a plan in place, it is a necessity to practice them.
Business owners need to take the time preparing for the possibility of a disaster. Catastrophic disasters come in several forms such as natural events, or of human cause. Business owners must consider what threats associate with their normal operations. This task can be overwhelming to the executives, managers and members enforcing the plans. In order to implement your plan you should consider the following:
1.) What your business does and your daily operations
2.) Where your business operates
3.) How it operates
Now consider what could happen to prevent any of these operations from being achieved.
Causes of Events
Natural disasters could be caused by wind, rain, flood, extended and or extreme temperatures, earthquakes, snow and ice. Human causes may include fires, break-ins, war, acts of terrorism. Generally, careful consideration of problems involve identifying the worst possible scenario that could occur even if the chance of these events occurring is seldom. Keep in mind that a single, unanticipated event could diminish or close your business. It is important that you have a plan that can recover or salvage a variety of situations.
Thought must be given to business property, structures, equipment, finances, machinery, products, insured’s belongings in your care, communications, transportation, suppliers, competitors, and employees. Depending on your business you will need to consider additional exposures.
Nevertheless the reason for a business interruption, the goal must be on continuing normal operations as quickly and as possible. Resuming normal business activity depends upon your insurance policies, however other arrangements are necessary and important as well.
VRP Insurance would like you to consider the following plans for the interruption of your business operations after a loss:
- Find use of another location to keep your business running
- Make duplicates of your business records and keep at a location other than your primary office
- Find other sources of product supplies in case your supplier is suffering business loss as well
- Find access to substitute machinery
- Purchase generators, be sure to maintain them as well
The most devastating disaster could be the failure to create a disaster recovery plan. Please consider how to deal with these events that could interupt or harm your business.
If you have any questions about your existing policy, are inquiring information about a possible future policy or need further information, please call us at (631) 738-7300 or get a quick quote at www.vrpinsurance.com
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