2016-07-14

Nobody wants to think about accidents or emergency situations, but sometimes it is necessary. As a business owner or senior staff member, you're responsible for the business and its employees, so if a 'situation' does occur, it's important for you to have a plan in place to minimise disruption.

What is a Business Continuity Plan?

A business continuity plan outlines the protocol for maintaining business functions should there be a major disruption - anything from a fire to company-wide illness. This plan will tell you the instructions that must be followed to minimise disruption to the business and maintain usual performance.

There are six general steps most companies will use to create a business continuity plan:

• Highlight the extent of the plan required - how detailed will you be? Do you need to write everything in or will staff automatically do some things by instinct?
• Recognise key business sectors - which parts of the business are most in-demand, most profitable, and therefore most important?
• Identify critical activities - what actions should you immediately take? Health and safety protocols, recovering stock or getting your website back online?
• Note any cross-department dependencies - what do all your departments rely on?
• Figure out an acceptable downtime length - how long can you afford to be out of business?
• Build a plan to rectify and maintain business processes - how are you going to do all of the above?

Many businesses will also have a disaster recovery plan, which focusses on immediate aftereffects like calling an insurer or IT provider to get systems back up and running.

Creating and Testing Your Business Continuity Plan

Once you've completed the above 6 steps, it is important to test it to ensure it will work and fulfil the actions you require. We'd recommend you doing this at least twice to ensure it is manageable. Top-table exercises and structured walk-throughs can be a big help.

From these tests you can then review and improve your business continuity plan so that, should a disaster occur, you and your staff are prepared.

How Does Insurance Play its Part?

The correct business insurance is a critical component of a business continuity plan as it will ensure you are protected should something terrible happen. Depending on the insurance you choose, you may be covered for replacing assets, repairing a business premises and compensated for a loss of cashflow. Legal expenses, public and employee liability and breakdown cover are all extras that may be covered too.

And business insurance doesn't have to be expensive. Compare quotes online with us to find the best deal for your business. Select your insurance type requirement and start comparing here.