What Is Business Continuation Insurance?
When you talk to one of our trained business experts, you will be told about business continuation insurance as part of your risk reduction package. Planning the future of your business means being prepared for any type of contingency, and business continuation insurance is a huge part of that type of planning.
It Is Not A Single Insurance Policy
Business continuation insurance is actually more of a plan than an insurance policy. It is a process put in place to protect the business from certain catastrophic events. The products used to protect the business are usually insurance, but the overall continuation plan is something that is customized to every business and made up of component parts.
A business continuation plan protects the whole business, but it is also designed to protect certain key parts of the business. The owner, key personnel, the management team, and business partners would all be part of the planning. For example, there would be life insurance taken out on the partners to be used in the event that one of them passes away.
Protecting From What?
If a business partner suddenly passes away, there will be costs accrued when it comes to replacing that partner and the legal avenues that have to be employed. When a partner suddenly passes, investors and customers can sometimes get nervous and decide to take their business elsewhere. This can also happen if a key employee suddenly leaves the company or passes away. Business continuation insurance is something that makes sure that the company survives these types of catastrophic incidents and is able to move forward.
What Does Business Continuation Insurance Do?
There are a lot of bases to cover when a key employee or business owner suddenly passes away or leaves the company. Business continuation insurance allows you to buy out a deceased partner to keep the business going. It puts cash into the company’s coffers to act as a buffer against business that is lost when a key employee suddenly leaves the company. In general, business continuation planning supplies the company with the finances it needs to operate after a critical event and prevent the company from going under.
Who Should Get Business Continuation Insurance?
Business continuation insurance may not be right for smaller businesses, but it is ideal for medium to larger size companies. No two business continuation plans are the same and there is no set format that is used to create these plans. It is important that you talk to a business expert to make sure that you get the plan that is ideal for your business and will help your business to survive if something unfortunate should happen.
One of the responsibilities of a business owner is to plan for as many contingencies as possible. By talking to one of our experts to put a business continuation plan in place, you will be protecting your company in the event of a catastrophic personnel loss. These are not the kinds of things a business owner wants to think about, but planning for them is essential to the success of any company.