Business Continuity For Dummies

Supporting Financial and Legal Aspects

As well as making great business and commercial sense (subjects we cover in the earlier sections ‘Making Business Sense’ and ‘Helping You Profit from Commercial Sense’), BC features other advantages too, some of which you may not have considered. In this section we discuss how introducing BC brings benefits relating to insurance, contractual obligations and profit margins.

What the insurance industry says about BC

The 2011 Business Continuity planning survey produced by the British Insurance Brokers’ Association (BIBA) and the Cabinet Office contains the following valuable information:

Sixty-two per cent of respondents said that those businesses with a Business Continuity Plan (BCP) will benefit from doors opening to new markets, a premium discount or a reduced excess.

Forty-four per cent of respondents said that business interruption insurance would benefit from improved terms or discounted premiums if a robust BCP was in place.

Of the insurer partners that responded, 83 per cent said that they would give a discount or improve terms to a business interruption policy if a BCP was in place.

Various respondents stated that a tangible benefit ...