No matter how careful your planning, there will be some substantial impact on your cashflow and profits in the event of a disaster. Draw up an estimate of the impact, by number of days of suspended operations. Insure for losses Speaking of the cost of recovery, business interruption insurance can be a critical part of keeping you in operation while you recover from a disaster. Such insurance covers you for your loss of business income, and reimburses your necessary expenses, when a natural disaster forces you to completely suspend operations. Ill. Business interruption insurance will cover such expenses as ongoing payroll, phone bills, rent, electricity, and reinstallation of phone and computer systems.
Many businesses cover themselves with six months worth of business income insurance.
It is a very competitive field so you can aggressively shop around. Hurricanes, earthquakes and other disasters trigger a multitude of claims, so you want a company that has a good track record during such times. This insurance is particularly important if you rely on one source for most of your supplies. This article has covered some of the basic steps in protecting yourself against loss from disasters. You may get additional information about contingency planning at the websites in the sidebar below.