A comprehensive disaster plan plays an essential role in risk management – and the planning process should include a thorough review of your company’s insurance program.
This analysis should answer these ten basic questions:
- Are policy coverage limits and deductibles appropriate?
- What types of disasters (perils) are covered and what perils are specifically excluded?
- Will insurance cover losses due to interruption of power or other critical services, major suppliers or buyers, disruption of transportation services, or a government prohibition of employees or customers entering the premises due to property damage caused by an insured peril?
- Does coverage factor in inflation, improvements, and building code changes?
- Is coverage written for “replacement cost” or “actual value” (cost less depreciation)?
- Does Business Interruption insurance cover loss of income, payroll expenses, and the cost of temporary relocation?
- Will implementing a comprehensive and effective Business Continuation Plan lead to reduced premiums?
- Will insurance protect management against litigation alleging poor continuity planning?
- Is policy documentation (serial numbers, dates of purchase, costs, receipts, photographs, etc.) detailed and up to date?
- Are the original of all insurance policies kept in a fireproof cabinet or a secure off-premises location with copies readily available?
Our agency’s risk management specialists would be happy to help you take this quiz – and work with you on crafting an effective insurance program that will help your business stay in business after disaster strikes. Just give us a call.
