Contact Us Today / 516.358.5600 ☰ ˟
Contact Us Today / 516.358.5600
Sexual Harassment Training COVID-19 FAQ Client Portal
Logo
  • Home
    • Home Page
    • Anti-Sexual Harassment Training
  • Get a Quote
  • Insurance Offered
    • Automobile
    • Business & Commercial
    • Church Insurance
    • Cyber Liability Insurance
    • Daycare Insurance
    • Health Insurance
    • Homeowner's Insurance
    • Life Insurance
    • Nonprofit - Social & Human Insurance
    • Professional Liability Insurance
    • School Insurance
    • Voluntary Benefits Insurance
    • Crime Insurance
  • Blog
  • Resources
    • Customer Service
    • File a Claim
    • Secure Area
    • Refer a Friend
    • Important Links
    • Calculators
    • Important Files
    • Free Reports
    • Insurance Glossary
    • Frequently Asked Questions
    • News Center
  • About Us
    • About Carriage Trade Insurance
    • Location Map
    • Employee Directory
    • Partners
    • Customers Testimonials
    • Privacy Policy
  • Contact

What type of insurance coverage do you need?
Home > Blog > 6 Steps to Minimize Business Interruptions
TUESDAY, SEPTEMBER 18, 2018

6 Steps to Minimize Business Interruptions

Image result for business insurance

 

According to the Federal Emergency Management Agency, 40 percent of businesses never reopen after a disaster. Implementing steps to prepare for and respond to disasters can help to reduce loss. In order to protect your business from unavoidable interruptions, it is recommended that you have a plan in place.

Having a plan in place serves the following purposes:

·       To protect employees and personnel

·       To prevent environmental contamination

·       To protect revenue, assets and information

·       To prevent loss and to contain loss that occurs

·       To protect your reputation

How to Minimize Business Interruptions

Here are six steps you can take to help minimize business interruptions:

1.       Determine the Risk

When determining the potential risks for business interruptions, consider both environmental risks and human risks. Additionally, consider which risks are preventable and which are not.

Once the risks are identified, you can begin to understand all elements involved, such as the hazard itself, the assets at risk, vulnerability to the risk and the ultimate impact of the risk. In order to be best prepared, rank each risk according to the likelihood of occurrence and the severity of impact.

2.       Calculating the Cost of Interruptions

After the risks have been ranked, analyze the impact of each risk. In calculating cost containment, the following should be considered:

·        Lost sales or income

·        Increased expenses

·        Regulatory fines or contractual penalties

·       Delay of business

1.       Understand Your Insurance Coverage

The next step would be to review your insurance coverage. Business interruption insurance generally comes into effect in the case of one of three circumstances:

·       Physical damage to the premises that cause suspended operations;

·       Damage to property that is covered by the insurance policy and prevents customers or employees from accessing the business; or

·       The government closes an area due to property damage that is covered by the insurance policy and prevents the customers or employees from accessing the business.

Since business interruption coverage can differ significantly, it is important to understand the policy terms, such as exclusions, coverage limits and waiting periods. Coverage is provided for lost net income only for the duration of regaining operation.

2.        Implementing Steps for Prevention and Mitigation

There are three different approaches for controlling and containing potential hazards:

·       Prevention: This method identifies preventable hazards and implements steps to avoid occurrence of the hazards.

·       Deterrence: This method identifies potential criminal activities that create business hazards. Steps are taken to prevent the criminal activities.

·       Mitigation: This method identifies hazards that cannot be prevented. Steps are taken to control and contain the hazards in case of an occurrence.

3.       Create a Crisis Communication Plan

Create a crisis communication plan in order to provide employees and customers with updates and critical information. The communication plan should have the following:

·       Chain of command: A chain of command allows for information to be shared efficiently and ensures that all personnel receive information.

·       Pre-scripted messages: Eliminate confusion by pre-scripting messages that will be shared with customers, employees and the public.

·       Bi-directional communication network: Allow for communication to occur in multiple directions in order to efficiently pass information.

4.       Preparing an Emergency Plan

An emergency plan should be prepared and in place before a hazard occurs. The plan should be practiced and reviewed to ensure the effectiveness of the plan. The plan should include the following elements:

·       IT and data recovery: Implement a data backup program to protect and recover important and sensitive information. Create a technology policy that assists in preventing data leaks in the case of telecommuting employees.

·       Contracts: Pre-arrange written contracts with other businesses and external suppliers in order to continue fulfilling commitments to customers.  

·       Resources: Prepare an inventory of resources that are essential to regaining the ability to operate as a business.

·       Test: Run a test of the plan to ensure the plan’s success.

By taking these six steps, it is possible to minimize potential hazards and to limit the impact of hazards.

Contact Carriage Trade Insurance to learn more about our Business Insurance options.

Posted 3:30 PM

Tags: business insurance, business tips
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2014
  • 2013
  • 2012

  • safety tips(59)
  • auto insurance(44)
  • business insurance(26)
  • health insurance(24)
  • driver safety(23)
  • homeowners insurance(21)
  • cyber security(20)
  • cyber liability(17)
  • distracted driving(14)
  • tips(13)
  • driving safety(12)
  • health tips(12)
  • daycare insurance(11)
  • school insurance(10)
  • nonprofit insurance(9)
  • prevention tips(8)
  • driving tips(8)
  • auto coverage(7)
  • car safety(6)
  • summer safety(5)
  • emergency kits(4)
  • woodworking insurance(4)
  • don't text and drive(4)
  • storm safety(3)
  • drunk driving(3)
  • emergency tips(3)
  • cyber safety(3)
  • social media safety(3)
  • cybersecurity(3)
  • woodworkers insurance(3)
  • covid vaccine(2)
  • life insurance(2)
  • lumberyard insurance(2)
  • coronavirus(2)
  • non-profit insurance(2)
  • directors and officers insurance coverage(2)
  • woodworkers tips(2)
  • awareness(2)
  • machinery safety(2)
  • safe computing 2022(2)
  • sexual harassment(2)
  • renters insurance(2)
  • covid 19(2)
  • #coronavirus #healthinsurance(1)
  • tips for nonprofit organizations(1)
  • tire safety(1)
  • local business(1)
  • mary quinn's mark foundation(1)
  • driving emergencies(1)
  • spring(1)

View Mobile Version

Our Customer Feedback

Read More

Our latest blogs

  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
Carriage Trade Insurance Agency, Inc.
99 Tulip Avenue
Suite 404
Floral Park NY 11001
At Carriage Trade Insurance, the spirit of creativity is alive and well! We’ve dedicated our careers – a combined 40-plus years – to continually stay abreast of trends and innovations in the insurance industry and put that knowledge to work for you to create unique and individualized insurance solutions.
We're here for you
Home Page/ About Us/ Contact Us/ Our Blog/ Latest News/ Join Our Newsletter/ Refer A Friend
Quick Help Links
Quote Forms/ Service Forms/ File a Claim/ Insurance Glossary/ FAQs
Icon Icon
Icon Icon Icon
Social Icon Social Icon Social Icon
© Copyright. All rights reserved. Powered by Insurance Website Builder