Global business insurance premiums in 2017 exceeded a whopping $700 billion. Companies today face an unprecedented number of risks ranging from the intensity of weather-related events to an expanding dependence on a complex mesh of technology and supply chains. Your company needs a business continuity plan, to help increase the chances of recovery, while minimizing the loss of property, life and wealth. Developing a business continuity strategy should be a well thought out activity that leads to a plan that you can benefit from in the event of any unforeseen incident. According to National Geographic, In 2012, nine of the top 10 most expensive world-wide natural disasters happened in the United States, with $77 billion in insured losses worldwide.
To start with, one should build a team of key decision-makers who will direct your business continuity planning activities. According to Employers Risk Insurance, a leading insurance provider of commercial insurance in Houston, there are four steps to go about developing an impelling business continuity plan.
Specify Danger or Risks
It is important to understand the risks that may endanger employees, customers, suppliers, property, and operations. These risks include spurious, malicious attacks, power outages, and system failures. Determine the risk that most likely will occur based on historical, geographic, organizational and other factors. You should estimate the probability of each event with a potential impact on the activity and speed of reaction. Seeking professional advice from providers of commercial general liability insurance is a good place to begin.
Analyze the Business Impact
Identifying people, places, suppliers, processes, and programs that are crucial to the survival of your business is an essential step to ensure business continuity. What features and resources can affect your ability to deliver goods or services or meet legal requirements in the event of termination or loss? You need to think about who and what is necessary to restore critical operations and then prioritize the need to restore each item after the event by using limited resources wisely.
Adopt Controls for Prevention
Armed with the right amount of business insurance in Houston, TX, you should aim to prevent incidents and reduce the impact or severity of the event. All prevention and mitigation plans should address emergency response, public relations, resource management, and employee communication.
Regularly Test, Train and Improve Your Plan
Devise an action plan that is an evolving strategy, one that should adapt to the constantly changing needs of your company. Regularly test and update – at least annually – or change functions, objects, suppliers or employees at critical times. And, remember that even your business insurance policy in Houston, TX will need to be updated. Training your employees to understand their part in implementing the continuity plan. Exercises may include a hypothetical course of scenarios either live or simulated. The key here is to guarantee that the plan should work as intended.
A well-defined business continuity plan can clearly communicate how your business will react during an event can help decrease risk — and is one of the best investments that your company can make. To cover all other risks, do consider commercial general liability insurance plans.