Business Continuity Planning and reducing your insurance premiums
Posted on 26th April 2019 by Steve Haines - Risk Manager
By using a risk assessment strategy and setting up a steering committee to draw up emergency and recovery plans, the potentially catastrophic effects of a serious loss such as a large fire, can be mitigated.
If the business is unable to trade for a prolonged period, the consequences can include;
- existing customers find alternative suppliers.
- new customers are not attracted to the business.
- loss of company reputation and prestige.
Resumption of trading as quickly as possible is therefore vital. Especially considering that 65% of single site businesses fail following a serious fire and 70% of businesses have no Business Continuity Plan (BCP) in place in the event of such an event.
Planning Steps to successful BCP
- Carry out a Risk Assessment – Identify ‘threats’ and ‘risk areas’ and assess the likely impact. Adopting a risk-based approach a priority action plan can be determined.
- Appoint a committee or team consisting of representatives from each main area of the business and allocate appropriate resources.
- Appoint a BCP Coordinator to take overall charge of the team. This should be a senior executive and someone with the appropriate authority to make decisions and implement action plans.
- Determine the objectives of the BCP. These should include; enabling the business to continue to operate as normally as possible, resume normal working as quickly as possible.
- Prepare and revise as necessary an Emergency Plan and a Recovery Plan.
A survey by BIBA (British Insurance Broker’s Association) indicated that 96% of respondents with understanding of BCP felt that having a plan would keep businesses trading or reduce costs incurred when the business may have otherwise failed.
Insurers are increasingly looking to BCP to mitigate loss and 83% of insurers would allow a discount or improved terms if a Business Continuity Plan is in place.
We find that business continuity planning is increasingly used as a measure of competent business management and there is much work to be done in the SME market.
Small businesses appear to be most at risk from the effects of a major disruption, usually water or fire related, so BCP is key in protecting such businesses.
Bespoke Business Continuity Planning
Caunce O’Hara can provide a bespoke Business Continuity Plan following a risk management audit, or simply advise your team if your company is at risk through a lack of planning. Our dedicated risk management surveyor can lead and advise in this very important area.
Please contact stevehaines@caunceohara.co.uk to discuss your requirements and request a highly competitive quotation.
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