Restoration Insurance Tips: Disaster Planning Mistakes (Part 2)
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 any future disaster. 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 tend to underestimate the actual costs of getting your company back up and running in a disaster. While most companies will 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 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 to communicate the event to your clients? How would you reassure them that you will be back up and running and assist them with their needs?
Tip: Draw up a plan to properly communicate with your clients. It may be good to collect email addresses and phone numbers to communicate any events with them immediately.
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 any items within the plan need to be changed. For example, restoring data can be one of the 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 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 critical parts of any disaster recovery plan. With the right coverages, your restoration company will not have to worry about paying for all 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 right coverage you need without paying more in premium than you have to.