Most UK companies are failing to consider the wider implications of potential business interruptions such as a flood or a fire, and are therefore falling short on their business continuity plans. This can have devastating effects on your business.
When it comes to the business damage that can be caused by floods, foot and mouth, fires or other events, it’s important for you to consider not only the initial damage to your own operations and the time it will take to recover, but also the implications to your customers, suppliers and surrounding businesses that may also have suffered.
Some businesses seriously underestimate how much time it will take to repair and rebuild their business or premises. They fail to consider what would happen if access to their premises was restricted or there was a break in the supply chain. If you are unprepared and unequipped for a lengthy break in production it can be financially devastating for your business.
Planning ahead and protecting your business from a potential break in income is essential - it’s easy to see how costs can mount up when business continuity plans aren’t in place, and it’s dangerous to think that it won’t happen to you.
By having well prepared business continuity plans, and carefully considered business insurance programmes, preparations can be made to minimise the effects of a business interruption. It can make your recovery process far easier, quicker, and less costly.
The indemnity period on a business continuity insurance policy starts from the time of the disaster. If your business is still falling far short of the pre-loss trading level when that period runs out, the financial consequences are down to you and not your insurers. Therefore you are advised to have an extended period of indemnity of at least 18 months on your business insurance policy.