Business Interruption claims exceed Property Damage claims by a ratio of 4 or 5 to 1. Figures show that 80% of businesses that suffer a major incident will never fully recover their pre-loss trading position and a proportion of these will cease operating entirely. Our loss control consultants are fully aware of the risks that clients encounter and can review these exposures in detail and provide solutions designed to help eliminate or reduce them. Some of the key areas to address are:
Single Sourced Materials – Clients sometimes obtain products from a single supplier. This can be by choice, when other suppliers are available. But, for others, there may be no alternative supplier. What happens if the supplier has a major fire that destroys their business?
Critical Equipment– Plant and equipment are critical components to any business, particularly if there is only one production line or there are bottleneck areas within the operation. How easily can key infrastructure be replaced? Is it subject to planned and preventive maintenance to limit downtime? Are critical spares held or can they be obtained on short notice?
Interdependency– Clients can rely on other facilities to either supply products or purchase “finished” goods. What happens if either of these facilities suffers a major loss? How will this affect the clients’ business?
Key Customers– Customers are critical to every business. However, customers will often make alternative arrangements (as part of their Business Continuity Plan) in the event that their regular supplier cannot deliver a particular product. On many occasions this business will then be lost forever.
Our loss control consultants can assist you in developing your business continuity plan. Key areas that will need to be addressed are:
Business Impact Analysis– The initial stage of any plan is to undertake a Business Impact Analysis. All possible exposures (including Natural Disasters) should be considered and then addressed according to their likelihood of occurrence and severity of impact upon operations.
Key Components– Aspects that need to be addressed within the plan include the management of staff, customers/ suppliers, available assistance, computers, alternative premises and services, and press/ television coverage.
Review and Testing– Once a plan has been developed, it is critical that it is regularly reviewed, tested and adjusted to address deficiencies, changes in the scope of the business, or any emerging risks.