An insurance policy is a legal contract of indemnity that transfers risk. And to that point, insurance has long been regarded and continues to be a component player in the business continuity planning process for many if not all organization of every size.
In a recent article written by Gary Hahn and posted on the americanchronicle.com website, a summary of the some roles that insurance does and does not play in risk management methodologies is presented and can be helpful input to the business continuity planning process.
However, even in the best written and communicated business continuity plans — without the guarantee of insurance repayment in the event of a catastrophic loss, a business will have a much higher risk of failing to recover from and more than likely not be able to survive that disaster. Some awareness regarding the cost of insurance vs. other various and company specific options should almost always be included in the risk mitigation analysis and solution process.
How does your organization address insurance in its risk management or disaster preparedness efforts? Read this article and begin increasing your business continuity planning team’s awareness of how insurance can play a role to further strengthen readiness and preparedness levels for threats of potential disasters.
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