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Risk Management Bulletin


By January 1, 2013No Comments

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:

  1. Are policy coverage limits and deductibles appropriate?
  2. What types of disasters (perils) are covered and what perils are specifically excluded?
  3. 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?
  4. Does coverage factor in inflation, improvements, and building code changes?
  5. Is coverage written for “replacement cost” or “actual value” (cost less depreciation)?
  6. Does Business Interruption insurance cover loss of income, payroll expenses, and the cost of temporary relocation?
  7. Will implementing a comprehensive and effective Business Continuation Plan lead to reduced premiums?
  8. Will insurance protect management against litigation alleging poor continuity planning?
  9. Is policy documentation (serial numbers, dates of purchase, costs, receipts, photographs, etc.) detailed and up to date?
  10. 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.