Restoration Insurance Tips: Disaster Planning Mistakes
Last week we provided the first four mistakes in our list of errors companies make regarding disaster planning. This week we will finish that list. Our goal is for your restoration company to be prepared against future disasters. If you have any questions about preparing your company, please feel free to give our office a call.
Mistake #5: Failure to Anticipate the True Cost of Recovery
Most people underestimate the costs of 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 time and cost tens of thousands of dollars.
Tip: Proper insurance can save your company in these situations. Business Income and Extra Expense coverage will provide money for 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 electronic or paper.
Mistake #6: Failure to Assess the Damage to your Customer Base
If a disaster were to happen, how would you 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 for properly communicating with your clients. Collecting email addresses and phone numbers to share any events with them immediately may be a good idea.
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 or if any items within the program need to be changed. For example, restoring data can be one of the most essential 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 technical issues may arise when restoring your data?
Mistake #8: Failure to Properly Buy Sufficient Insurance
Having adequate insurance is one of the most essential parts of any disaster recovery plan. With the right coverages, the restoration company will not have to worry about paying for all the restoration costs. In addition to property insurance that will restore your damaged property, other insurance coverages will pay you for your lost income, incur the cost of repairing your data, and even help pay for a temporary office while you are getting things back up and going.
Tip: Talk with an agency specializing 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 range you need without paying more premiums than you have to.