INVOLVED NOT INDIFFERENT

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4 August 2015How you can maintain continuity should the unexpected happen

How you can maintain continuity should the unexpected happen

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Interruptions and disasters only happen to someone else, right? It’s a view more common than you might think. The ‘outage’ – the dry term for the balloon going up – that hampers or stops your business will put you at an immediate and potentially crippling disadvantage.

Whether caused by fire, flood, subsidence, IT failure or crime, unexpected disasters can turn your business upside down in an instant. Water damage becomes a particular risk during summer storms. As with a serious physical injury, many businesses never entirely recover from such an event. Loyalty and sympathy only go so far before you face losing orders, contracts, profits, people and jobs or worse. Estimates vary depending on where you look - but survey data quoted by organisations ranging from KPMG to AXA Insurance put the frequency of companies failing within two years of a major incident at between 40 and 80 per cent.

When an insurer accepts the claim, the specific policy – premises, cyber or fraud insurance for instance - will cover the immediate damage, be it physical, financial, intellectual property or data-related. That’s their function. But business interruption (BI) cover delivers protection that shields you from the long-term fallout that can take months or years to fix. It’s a business continuity pack, one that contains all you need to sustain the business financially while you get back on your feet. BI cover is there to provide a solid bridge back from post-incident to recovery that gives you time to recover.

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