Why is Business Continuity Important?

Why is Business Continuity Important

After disasters, businesses face risks of closing.

Across the nation, we’ve seen a variety of severe weather-related events. As there is little we can do to control the weather system, there are steps that we must take to protect our lives on the ground. Many businesses face a huge amount of exposures. Managing these risk with a business continuity plan is the key to survival for any organization.

Business continuity planning is a critical component for every company. Unfortunately, not every business develops such a plan. There are a few misconceptions and realities about business continuity planning.

Your team may not know what to do in an emergency.

Even the best employees cannot be expected to know what to do when disaster strikes. Without a plan in place, many team members are confused about what they should do. A continuity plan ensures everyone is on the same page, maintains organization, and speeds up recovery.

Your insurance may not cover all the losses.

Insurance alone is not a strategy that you should solely rely on. Proper coverage is a significant and important part of the plan, but it’ll be on your shoulders to recover damages such as loss of customers, loss of market share, or setbacks in development.

Business continuity and disaster recover planning are the same.

Business continuity is a proactive plan to avoid a disruption of operations. It details steps to be taken before, during, and after an event to maintain the financial viability of a business. Disaster recovery, on the other hand, is a reactive plan for responding after an event. This plan details emergency response, safety, and operational procedures when a disaster hits.

It doesn’t take a major disaster to shut down a business. Develop and maintain your business continuity plan today. Visit the expert team at American Premier Insurance for all of your business insurance needs in Phoenix and neighboring cities in Arizona today.