Originally established for the manufacturing industry, Business Interruption Insurance has evolved into an essential risk transfer tool for all industries. Coverage provides resources that aid in recovery and can help get a company back on its feet quickly.

How to Minimize Business Interruptions

Here are six steps you can take to help minimize business interruptions:

  1. Determine the Risk

When determining the potential risks for business interruptions, consider both environmental risks and human risks. Additionally, consider which risks are preventable and which are not.

  1. Calculating the Cost of Interruptions

After the risks have been ranked, analyze the impact of each risk. In calculating cost containment, the following should be considered:

  1. Understand Your Insurance Coverage

The next step would be to review your insurance coverage. Business interruption insurance generally comes into effect in the case of one of three circumstances:

  1. Implementing Steps for Prevention and Mitigation

There are three different approaches for controlling and containing potential hazards: prevention, deterrence and mitigation.

  1. Create a Crisis Communication Plan

Create a crisis communication plan in order to provide employees and customers with updates and critical information.

  1. Preparing an Emergency Plan

An emergency plan should be prepared and in place before a hazard occurs. The plan should be practiced and reviewed to ensure the effectiveness of the plan.