The Risk Relationship Between Business Continuity Planning, Custom Tailored Insurance Programs, and the Actual Claims Process.
Most large industrial and commercial businesses share a serious commitment to sound risk management and have loss prevention programs and Business Continuity Plans (BCPs) in place. Together, this helps minimize the chance of disasters or catastrophic events from ever happening, and if by chance they do, the BCPs help the companies in most respects for its employees, data and technology, public relations, logistics, and a multitude of other continuity issues necessary to resume operations with minimal disruption as quickly as possible.
Businesses also rely on custom-tailored insurance programs with unique and unusual coverages to help them meet their risk management challenges. These insurance solutions for property damage and business interruption balance the business’s appetite for risk versus the costs of the insurance and the substantial self-insured retentions.
It is easy to imagine that with top-notch planning and loss prevention programs in place, such a thing could never happen to your company. Yet complex property losses to facilities and equipment resulting from natural or manmade causes occur to other companies every day.
No matter how many scenarios are considered, it is impossible to imagine everything that might go wrong after facilities and equipment are damaged or destroyed. What is certain is this: After a significant loss, the business will get a first-hand look at the effectiveness of its Business Continuity Planning, whether or not the insurance coverages in place will ultimately fund the required financial recovery as intended, the financial realization of its self-insured retention, and an understanding of the actual property and business interruption claims to handle the process.
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