While Business Interruption insurance is a must-have for most, the coverage alone does not guarantee that you will still be operational after a disaster.  During Hurricanes and other regional disasters, the coverage may not apply at all!  Typically, business interruption coverage will not kick in during a utility outage, and if that company cannot find a generator as well as someone to hook it up, they may be forced to shut down even if their building is not damaged.

Do you know what size generator it would take to power your building?  Do you know how many amps, or what the voltage is, or if it’s single or 3 phase?   Most customers that call us just say that they need a large generator and have no idea how much power is actually required.  A generator that does not fit the application can cause all sorts of issues, including damaging valuable equipment and potentially causing a fire.

Business interruption coverage usually has to be tied to some sort of physical damage to the property which forces the company to shut down.  The amount of time that the coverage is good for varies between policies.  The major disadvantage is even though you may receive compensation for the days you are closed, you are losing valuable market share in the process.  Your most loyal customers might turn to a competitor to fulfill their needs if you are unable to.  It’s less costly to retain customers then it is to find a new one, and if you’re shut down for an extended period of time you might find yourself looking for a whole new customer base when the doors finally do open.

So, in addition to checking with your broker to make sure that you understand and can modify the coverage to suit your needs, what can you do?  It all begins with a business continuity plan for your property, your people, and your technology.  Planning for various disruptions gives companies a competitive edge if there is a regional disaster.  The business becomes resilient compared to its competitors that don’t have a plan in place and has the opportunity to gain market share while the competition is trying to figure out what to do next.

At Flood Zone Disaster Recovery Solutions, we specialize not only in creating these plans but also on executing them when needed the most.  We can sit down and find out what your critical assets are, where your chokepoints are, and create a custom plan tailored to your company.  We believe in a smarter, safer, and more efficient recovery process.  Find out more about our Back in Business Program and Business Continuity Planning Service today!