Why do I need a Business Continuity Program, I have insurance.

This is one of the questions that every BC consultant receives when discussing Business Continuity Programs with potential clients.

While it is true that you may have some form of Business Interruption insurance, have you reviewed it to see that it covers the loss from the most typical type of disasters you would experience? Many premiums have climbed to the point where companies do not take the coverage.

Another point to consider is how long the coverage will last if you need it after an emergency or disaster event?

Most companies only take the coverage for 12 months. In reality this coverage should be taken out for at least a period of 3 years.

You must also remember that Business Interruption insurance will not cover losses related to:

* New products or services being abandoned
* Loss of new business opportunities in other markets
* Your loss of reputation
* The lost customers
* Your brand’s value not being worth what it was before the disaster.

Business Interruption insurance will provide some financial cushion, but on its own, it will not mean that your company would survive a disaster.

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