Restoration Insurance Tips: Disaster Planning Mistakes (Part 2)
Last week we provided the first four mistakes in our list of errors companies make when it comes to disaster planning. This week we will finish that list. Our goal is for your restoration company to be prepared against any future disaster. If you have any questions on preparing your company, please feel free to give our office a call.
Mistake #5: Failure to Anticipate the True Cost of Recovery
Most people tend to underestimate the true costs associated with getting your company back up and running in a disaster. While most companies will try to plan for IT recovery costs, many fail to include necessary travel, hotels, office rental, and network access as part of the recovery costs.
Additionally, restoring important documents and lost data can take up significant time and cost into the tens of thousands of dollars.
Tip: Proper insurance can save your company in these situations. Business Income and Extra Expense coverage will provide money to your company to get back up and running as soon as possible. This includes a rental office, hotels, and even travel expenses. Additionally, Electronic Data Protection and Valuable Papers and Records coverage will pay to restore your lost data whether it’s electronic or on paper.
Mistake #6: Failure to Assess the Damage to your Customer Base
If a disaster were to happen, do you know how you would communicate the event to your clients? How would you reassure them that you will be back up and running and able to assist them with their needs.
Tip: Draw up a plan on how you will properly communicate with your clients. It may a good idea to collect email addresses and phone numbers in order to immediately communicate any events with them.
Mistake #7: Failure to Test Your Plan
Even the best, most well-thought out plans need to be tested. Without testing your disaster plan, you will not know how employees will respond, nor will you know if there are any items within the plan that need to be changed. For example, restoring data can be one of the most important items in recovering from a disaster. Do you know how long it will take you to restore the data? Have you tested the data on new machines? Do you know what kind of technical issues may arise in restoring your data?
Mistake #8: Failure to Properly Buy Sufficient Insurance
Having adequate insurance is one of the most important parts of any disaster recovery plan. With the right coverages you restoration company will not have to worry paying for all of the restoration costs. In addition to property insurance that will restore your damaged property, there are other insurance coverages that will pay you for your lost income, incur the cost of restoring your data, and even help pay for a temporary office while you are getting things back up and going.
Tip: Talk with an agency that specializes in restoration contractors about the best insurance coverages available to help you prepare against potential calamities. Working with the right broker will ensure you have the right coverage you need without paying more in premium than you have to.