Dealing with Business Interruptions: The Planned Approach

Businesses may have some ups and downs, so you should be prepared for the unexpected. As a business owner, you need to have a proper plan to manage and minimize unexpected interruptions. Make sure your business interruption management plan can tackle any threat to the company’s revenue, assets, and reputation and protects you and your employees. Here are a few tips to reduce business interruptions.

Identify Risk and Calculate the Cost of Interruptions

Every business comes with risks, and the first step to decrease business interruptions is to identify the risks to your business. Determine the potential hazards (either environmental or human risks) and understand their impact on your business assets, revenue, and reputation. Once you have determined the risks that your business may face, you will be able to prioritize the risks based on what they will cost to your organization. You should consider factors like delay in delivering your consignments, an increase in expenses, and contractual penalties that you may need to pay.

Understand Your Insurance Coverage

Along with prevention, deterrence, and mitigation of hazards, an important step to minimize business interruptions is to understand your insurance coverage. Pay special attention to the coverage limits, waiting periods, and exclusions of the policy. This will help you decide if the policy is enough to help survive your business, or you need to make any amendments to your contingency plan.

Have a Crisis Communication Plan

Timely communication is the key to update your employees, stakeholders, and customers about the situation. Make sure your crisis communication plan has pre-scripted messages that can be easily shared among your employees and customers. Also, the chain of command in such cases should be for efficient information sharing and should allow for a bi-directional communication network. The last important tip to minimize business interruptions is to identify critical risks and prepare a plan to manage those and ensure a constant flow of operations. Also, keep an inventory of all necessary resources and have a digital backup of sensitive data to tackle contingencies. Besides these, have the right business insurance to survive your business in difficult times. Contact the experts atFuller Insurance for all your business insurance needs.