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Business Continuity Planning and reducing your insurance premiums

Posted on 26th April 2019 by Steve Haines - Risk Manager

business continuity planning

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.

contingency planning and resilience

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.


Related Articles:

Risk Management – covered so you can work worry free

Preparation in the event of a flood

Fire Risk – Mill Fires

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