Site icon GDI Insurance Agency, Inc.

Build Your Business Continuity Plan Before Disaster Strikes

Grant Davis
Business Continuity

Why You Should Build Your Business Continuity Plan 

40% of all all California businesses that have insurance in place and sustain a loss at their primary location are out of business for good! This is where your business continuity plan come into play!

Call Grant Davis at 888-991-2929, or click here to download you Business Continuity Plan!

The majority of the 60% that make it have one thing in common!  They had a disaster recovery plan in place.  So I thought I would just share a brief overview of what a plan looks like.

Of course your GDI Insurance Broker is here to help.  As you see just buying insurance is never the answer.  It is just part of the solution, but interestingly insurance is not the most important part of the plan!

What is Business Continuity Planning?

Business continuity planning is the process of creating a plan now, so that you will be able to recover the most vulnerable parts of your company after a business interruption occurs. Your company’s business continuity plan, in conjunction with business interruption insurance, form your business continuity management (BCM) program. Businesses with strong BCM programs are more resilient in the face of emergencies and disasters.

Why is Business Continuity Planning Important?

Despite growing evidence that preparation is key to surviving a business emergency, more than 60 percent of small businesses do not have a formal emergency response plan. A business continuity plan, if implemented and maintained, can be the difference between successfully recovering from a business interruption and going out of business.

How Do I Use This Guide?

The Business Continuity Planning Toolkit pairs with the Business Continuity Sample Plan, providing descriptions of the purpose of each section of the sample plan. This toolkit follows the same format as the sample plan, making it easy to use as guidance when piecing the sample plan together.

This toolkit is divided into six sections:

  1. Direction and Control
  2. Communication
  3. Life Safety
  4. Property Protection
  5. Community Outreach
  6. Recovery and Restoration
  7. Implementation and Maintenance

Each section goes over the critical activities your organization needs to implement before, during and after a business interruption.

I didn’t include all the below.  But if you send me an Email Grant.davis@gdiins.com and ask I will send you this entire program in word so you can get started.   No cost or obligation other than to just know GDI can help your business big or small we have the programs to reduce risk and cut your insurance costs!

Table of Contents

Direction and Control

The system for managing resources, analyzing information and making decisions in an emergency is called direction and control. This section describes the configuration of your direction and control system, which will depend on the size of your company and your existing resources.

Business Mission Statement

A mission statement is a clear, concise declaration of your business’ goals and the philosophies underlying them. It distills what your business is all about for customers, employees and the market. It should reflect every facet of your business and is crucial to developing a comprehensive and meaningful business continuity plan.

Business Continuity Policy

A Business Continuity Policy (BPC) is a plan, supported by senior management, to ensure that the necessary steps are taken to identify the impact of potential losses, maintain viable recovery strategies and supervise the continuity of operations through personnel training, plan testing and maintenance. The Business Continuity Policy should contain all the procedures necessary to continue business operations during or after an emergency.

A typical Business Continuity Plan should contain documents outlining the following:

Emergency Management Group

The Emergency Management Group (EMG) is responsible for controlling all incident-related activities. The EMG allocates resources to a single Incident Commander, who oversees the technical aspects of the response. EMG members should be senior managers who have the authority to:

Incident Commander

The Incident Commander (IC) is the spokesperson for the EMG and is responsible for planning and execution, managing the incident from the front line, determining whether outside assistance is needed, and relaying requests for internal resources or outside assistance through the Emergency Operations Centre.

The IC can be any employee, but a member of management with authority to make decisions is usually the best choice.

Team Processes and Procedures

All teams have workflows that they need to follow. In an emergency, you may need to outsource help to keep a team functioning. Make sure to attach the team processes and procedures (or provide a link to where they are stored) so any new employees know how to work on the team.

Because managers are not always present during times of crisis, clearly articulated processes and procedures for all team members are essential in order to avoid confusion and ensure business operations continue.

Incident Commander Workflow

The IC needs to be agile and respond to an emergency immediately with a checklist of tasks to accomplish. Compile a list of what you want the IC to do immediately in the event of a business interruption. Specifying which tasks you want completed immediately will help your business stay nimble and minimize the negative effects of an interruption.

Emergency Operations Center

The Emergency Operations Center (EOC) serves as a centralized management center for emergency operations. Here, decisions are made by the EMG based upon information provided by the IC and other personnel. Every facility should designate an area where decision makers can gather during an emergency.

The EOC should be located in an area of the facility not likely to be involved in an incident and the EMG should designate an alternate EOC in case the primary location is not usable.

Each facility must determine its requirements for an EOC based upon its functions and the number of people involved. Ideally, the EOC is a dedicated area equipped with all the tools necessary to respond quickly and appropriately to an emergency.

EOCs must be stocked with:

Communication

Communications are essential to any business operation. A solid communication system is needed to report emergencies, warn personnel of any danger, keep families and off-duty employees informed about events happening at the facility, coordinate response actions and keep in contact with customers and suppliers. This section describes your communication system during an emergency.

Emergency Considerations

Consider the functions your facility might need to perform in an emergency and the communications systems needed to support those functions. Consider communications between:

In an emergency, personnel will need to know whether their families are safe—taking care of loved ones is always a first priority. Make plans for communicating with employees’ families in an emergency.

Encourage employees to:

Notification

Communication with employees in an emergency is crucial for establishing safety and ensuring business can continue.

Accomplish the following to ensure communication stays clear and open during an emergency:

Warning

In the event of an emergency, it is imperative that employees are properly alerted of dangers they may face.

Establish a system for warning personnel of an emergency. The system should:

After implementing your warning system, accomplish the following:

Confidentiality Requirements

Do you have any agreements with other companies you work with that require you to keep certain things confidential? Make sure to attach these agreements so you have a copy in an emergency.

Organizational Chart

Your organizational chart shows the hierarchy of employees and the chain of command. It is important to have this information on hand in an emergency. List your organizational chart or attach it here.

Customer Lists

Customers are the lifeblood of a business, so contact with them is a top priority. Without a list of customers to contact in the event of an emergency, you risk alienating past, present and future business contacts. Customers, especially those with pending orders, need to be contacted immediately and convinced that business will continue despite the emergency. Swift, confident communication to your customers following an emergency helps soothe current business partners and stop them from defecting to the competition. Attach (or write in) contact information about your key contact(s) at each company. Update this list at least quarterly.

Utility Provider Information

When a disaster strikes, utilities such as electricity and gas may be temporarily suspended. For the safety of your employees and the health of your business, it is imperative that you restore utilities as soon as possible. To do that, you need the contact information of your utility provider. Immediately contacting the emergency line of your utility provider can help you restore power, save money—and even save lives.

Suppliers and Equipment Providers

Where does your company buy the materials needed to produce its product or service? List your supplier contracts and their contact information here. To expedite recovery, find backup suppliers for each.

Life Safety

Protecting the health and safety of everyone in the facility should be your first priority during an emergency. This section describes your system for evacuation, accountability, shelter and preparedness during a business interruption, which is key for a successful business continuity plan.

Evacuation Planning

Establishing clear, easy-to-follow evacuation procedures is a basic requirement to ensuring your employees’ safety. In the event of fire, an immediate evacuation to a predetermined area away from the facility is necessary. In the event of a natural disaster, evacuation could involve the entire community and take place over a period of days.

To develop a thorough evacuation policy, accomplish the following:

Evacuation Routes and Exits

Designate primary and secondary evacuation routes and exits that are clearly marked and well lit. Post signs and install emergency lighting in case a power outage occurs during an evacuation.

To facilitate a smooth, speedy evacuation, ensure your evacuation routes are:

Assembly and Accountability

Assembling and accounting for all employees in the wake of a disaster is crucial to quelling confusion and ensuring safety. But obtaining an accurate account of personnel after a site evacuation requires planning and practice. Follow these guidelines to improve the effectiveness of your assembly and accountability procedures:

Shelter

In some emergencies, the best means of protection is to take shelter either within the facility or away from the facility in a public building. Determine the conditions that would force you and your employees to take shelter, and accomplish the following to guarantee you have access to suitable shelter:

Employee Training

A comprehensive evacuation plan means nothing if your employees do not know it. Train all employees in evacuation, shelter and emergency procedures. Conduct training sessions at least annually or when the following occurs:

To ensure your employees stay aware of emergency procedures all year long, provide them with checklists and evacuation maps. Post additional evacuation maps in strategic locations, and consider the informational needs of customers and others who visit the facility.

Family Preparedness

Since employees are your most valuable asset, consider the range of services that you could provide or arrange for after an emergency, including the following:

Investigate ways to help employees prepare their families for emergencies. This will increase their personal safety and help the facility get back up and running. Employees who are prepared at home will be better able to carry out their responsibilities at work.

 Property Protection

Organizing a system for protecting facilities, equipment and vital records is essential to restoring operations once an emergency has occurred. This section describes your property protection plan.

Protection Systems

Protection systems safeguard your assets when you cannot. Determine what you need in order to install systems that detect abnormal situations, provide warning and protect property, such as the following:

Mitigation

Explore ways to reduce the effects of emergencies, such as moving or constructing facilities away from flood plains and fault zones. Also consider ways to reduce the chances of emergencies from occurring, such as changing processes or materials used to run the business. Consider implementing the following physical measures to mitigate the effects of an emergency:

There are also nonstructural mitigation measures to consider, including those listed below:

Facility Shutdown

Facility shutdown is generally a last resort but always a possibility. Improper or disorganized shutdown can result in confusion, injury and property damage. Some facilities require only simple actions such as turning off equipment, locking doors and activating alarms. Others require much more complex shutdown procedures.

Work with department heads to establish shutdown procedures. Include information about when and how to shut off utilities. Identify the following factors to improve the effectiveness of your shutdown procedures:

Records Preservation

Vital records are essential to resuming business after an emergency. Vital records may include the following:

Analyzing and prioritizing vital records is a difficult task that involves doing the following:

After identifying your vital records, establish procedures for protecting and accessing them. There are many tasks to complete when protecting vital records, including those listed below:

Building Information

Attach all appropriate information pertaining to building and site maps that indicate the following:

 Community Outreach

Your facility’s relationship with the community will influence your ability to protect personnel and property and return to normal operations. This section describes ways to involve outside organizations in the emergency management plan.

Mutual Aid Agreements

To avoid confusion and conflict in an emergency, establish mutual aid agreements with local response agencies and businesses. Include these agencies in facility training exercises whenever possible. These agreements should:

Mutual aid agreements can address any number of activities or resources that might be needed in an emergency, such as the following:

Community Service

In community-wide emergencies, business and industry are often needed to assist the community with the following:

While there is no way to predict what demands will be placed on your company’s resources, consider how the community’s needs might influence your corporate responsibilities in an emergency. Also, consider the opportunities for community service before an emergency occurs.

Public Information

When site emergencies expand beyond the facility, the community will want to know the nature of the incident, whether their safety or health is in danger, what is being done to resolve the problem, and what was done to prevent the situation from happening in the first place. Determine the audiences that may be affected by an emergency and identify their information needs. Be sure to consider the needs of the following audiences:

The community will want to know answers to the following questions:

Media Response

In an emergency, the media are the most important link to the public. Try to develop and maintain positive relations with media outlets in your area. Consider their particular needs and interests, and explain to them your plan for protecting personnel and preventing emergencies.

Determine how you would communicate important public information via the media in an emergency. Designate a trained and an alternate spokesperson. Set up a media briefing area and establish security procedures. When releasing information to the media, follow procedures for ensuring that information is complete, accurate and approved for the public. Prepare background information about your facility so you can control how the media and public perceive your organization.

When providing information to the media during an emergency, follow these guidelines:

Local Emergency Information

Gather contact information and response plans from these local services:

Have regular meetings with community crisis personnel to review emergency plans and procedures. Discuss what you are doing to prepare for and prevent emergencies and emphasize your concern for the community’s welfare. When meeting with community crisis personnel, accomplish the following to foster organization and communication:

Make sure to meet with your neighbors to determine how you could assist each other in an emergency. Communication begets organization.

Recovery and Restoration

Business recovery and restoration, or business resumption, goes right to a facility’s bottom line: keeping people employed and the business running. This section describes your plan during a business interruption for logistics, distribution, operations, product and service development, marketing, sales, management, human resources and more.

Procurement, Logistics and Distribution

Procurement, logistics and distribution are those activities associated with obtaining and storing inputs along with storing and transporting finished products to customers. This can include sourcing goods and services, purchasing those goods and services from suppliers, storing goods in warehouses, and transporting your finished products to customers.

Consider the crucial, time-sensitive tasks any departments involved in procurement, logistics and distribution need to complete. To help you identify these crucial tasks, ask yourself the following questions:

For each function you enter, be sure to include:

Attach any raw materials and supply lists that are necessary to recovering your procurement, logistics and distribution functions here.

Would you like more structure? Download the Business Impact Analysis Template.

Operations

Operations are those activities associated with transforming inputs into final outputs, which can include the processing, refining and packaging of your goods or services.

Consider the crucial, time-sensitive tasks any departments involved in operations need to complete. To help you identify these crucial tasks, ask yourself the following questions:

For each function you enter, be sure to include:

Attach any raw materials and supply lists that are necessary to recovering your operations functions here.

Would you like more structure? Download the Business Impact Analysis Template.

Product or Service Development

Product or service development is those activities associated with bringing a new, improved or redesigned product or service to market. This can include research, marketing analysis, design, and engineering.

Consider the crucial, time-sensitive tasks any departments involved in product or service development need to complete. To help you identify these crucial tasks, ask yourself the following questions:

For each function you enter, be sure to include:

Attach any raw materials and supply lists that are necessary to recovering your product or service development functions here.

Would you like more structure? Download the Business Impact Analysis Template.

Marketing, Sales, and Customer Accounts

Marketing, sales and customer accounts are those activities associated with informing existing or potential buyers. This can include promotion, advertising, telemarketing, selling, and retail management.

Consider the crucial, time-sensitive tasks any departments involved in marketing, sales and customer accounts need to complete. To help you identify these crucial tasks, ask yourself the following questions:

For each function you enter, be sure to include:

Attach any raw materials and supply lists that are necessary to recovering your marketing, sales and customer accounts functions here.

Would you like more support? Download the Business Impact Analysis Template.

Customer or Aftersales Services

Customer and aftersales services are those activities provided to customers after they purchase your goods or services. This can include training, help-desk services, call-center services, and customer support for guarantees and warranties.

Consider the crucial, time-sensitive tasks any departments involved in customer and aftersales services need to complete. To help you identify these crucial tasks, ask yourself the following questions:

For each function you enter, be sure to include:

Attach any raw materials and supply lists that are necessary to recovering your customer and aftersales services functions here.

Would you like more structure? Download the Business Impact Analysis Template.

General Management and Firm Infrastructure

General management and firm infrastructure are those activities associated with corporate governance. This can include accounting, building services, management and administrative support.

Consider the crucial, time-sensitive tasks any departments involved in general management and firm infrastructure need to complete. To help you identify these crucial tasks, ask yourself the following questions:

For each function you enter, be sure to include:

Attach any raw materials and supply lists that are necessary to recovering your general management and firm infrastructure functions here.

Would you like more structure? Download the Business Impact Analysis Template.

Human Resource Management

Human resource management are those activities associated with managing your employees. This can include recruiting, hiring, training, compensating and dismissing personnel.

Consider the crucial, time-sensitive tasks any departments involved in human resource management need to complete. To help you identify these crucial tasks, ask yourself the following questions:

For each function you enter, be sure to include:

Attach any raw materials and supply lists that are necessary to recovering your human resource management functions here.

Would you like more structure? Download the Business Impact Analysis Template.

Technology and Process Development

Technology and process development are those activities associated with technical knowledge and maintenance. This can include automating, designing or redesigning equipment, hardware, software and procedures.

Consider the crucial, time-sensitive tasks any departments involved in technology and process development need to complete. To help you identify these crucial tasks, ask yourself the following questions:

For each function you enter, be sure to include:

Attach any raw materials and supply lists that are necessary to recovering your technology and process development functions here.

Would you like more structure? Download the Business Impact Analysis Template.

Implementation and Maintenance

It is extremely important to keep your plan current by exercising, maintaining and reviewing it. You should be integrating your plan into company workflows and training employees on their roles. This section describes your plan implementation and maintenance.

Integrate the Plan into Company Operations

Implementation means more than simply exercising the plan during an emergency. It means acting on recommendations made during the vulnerability analysis, integrating the plan into company operations, training employees and evaluating the plan.

Emergency planning must become part of the corporate culture. Look for opportunities to build awareness, train personnel and test procedures. Be sure to involve all levels of management, all departments and the community in the planning process. Make emergency management part of what personnel do on a day-to-day basis. Test how completely the plan has been integrated into your company operations by asking the following questions:

Business Interruption Insurance

Most companies discover that they are not properly insured only after they have suffered a loss. Lack of appropriate insurance can be financially devastating. Ask your insurance advisor the following questions to determine your individual needs:

Conduct Drills and Exercises

Conduct periodic drills and exercises to ensure emergency preparedness that involve community responders. After each training activity, review what worked and what needs improvement. Involve both personnel and community responders in the evaluation process.

Training can take many forms, including those listed below:

Train Employees

Employee training is crucial to ensuring a speedy evacuation and minimizing injuries and damage. General training for all employees should address the following:

The scenarios developed during the vulnerability analysis can serve as the basis for training events.

Everyone who works at or visits the facility requires some form of training. This could include periodic employee discussion sessions to review procedures, technical training in equipment use for emergency responders, evacuation drills and full-scale exercises.

Assign responsibility for developing a training plan. Consider the training and information needs for employees, contractors, visitors, managers and those with an emergency response role identified in the plan.

Determine the following for a 12-month training period:

Annual Plan Audit

To ensure the plan is relevant at all times, conduct a formal audit of the entire plan at least once a year. There are many issues to consider when auditing your plan, including the following:

In addition to conducting a formal audit of the entire plan at least once a year, evaluate and modify the plan at these times:

Remember to brief personnel on changes to the plan every time it is modified.

 Appendix

Business Continuity Planning – Vendor Questionnaire

As a key supplier of , it is important that we understand your level of readiness in the event of a disaster. To assist us with our business continuity planning, please fill out the information below.

Company name:

Company address:

City, state and zip:

Disaster recovery contact:

Contact’s work phone:

Equipment, supplies, materials, goods or services provided:

Please answer the following questions (circle either “yes” or “no”):

1.    Do you have a formalized business continuity program? Yes        No
2.    Do you have a recovery plan? Yes        No
3.    Is your recovery plan documented? Yes        No
4.    Have you tested your recovery plan? Yes        No
5.    Do you conduct employee disaster recovery training regularly? Yes        No
6.    Do you maintain a copy of your recovery plan off-site? Yes        No
7.    Do you back up critical data on a regular basis? Yes        No
8.    Do you send your backups off-site on a regular basis? Yes        No
9.    Do you have a formalized process to update your recovery plan? Yes        No

Briefly describe your business continuity program:

Return completed questionnaire to:

[Insert Vendor Name]

[Insert Vendor Street Address]

[Insert Vendor City], [Insert Vendor State] [Insert Vendor Zip]

Dear [Insert Vendor Contact Name]:

is currently developing a formal Business Continuity Plan to provide for the recovery and/or continuation of our business functions following a disaster event. As part of that process, we have identified your company as a critical supplier to ’s day-to-day operations.

To assist us in our planning, it is important that we understand your ability to respond to a disaster event. Please fill out the attached questionnaire. It will take just a few minutes to complete and your prompt reply will be greatly appreciated.

Return completed questionnaire to:

,

,

Upon review of your reply, we reserve the right to contact you to further discuss your business continuity program.

Thank you in advance for your assistance.

Sincerely,

For: Area: 
Conducted by: Date: 

In the aftermath of a man-made or natural disaster, you and your company will have a number of concerns to account for as you prepare to reopen for business. Follow this checklist to ensure that you take the proper steps to recover after a disaster strikes.

Recovery Steps COMPLETE
Decide with your partners or co-owners to dissolve your business entity. Document the decision with a written agreement.
Contact your insurance provider(s) to start the claims process.
Assess damage:

–   Make note of any structural damage to building(s).

–   Note any damage to equipment, machinery or company vehicles.

–   Note any lost or damaged inventory (both materials for business use and products for sale).
As they come to your attention, compile a list of concerns that must be addressed before you are able to reopen.
Contact employees, suppliers and customers to inform them of any disruptions in operation and an expected date when they can anticipate it to resume.
If you have concerns that damage to a building could pose a safety hazard to employees or customers, have the building professionally inspected.
Properly secure the building while repairs are being made or if relocation of business activity is necessary.
Ensure utilities are restored and in safe working order before resuming business operations.
Properly repair and clean facility to ensure the environment is free of any safety hazards before resuming business operations.
Financial Considerations COMPLETE
File a claim with your business interruption insurance provider.
Determine the amount of lost income the disaster has caused.
Compile the following information to share with you insurance adjuster:
–    Sales records and history
–    Profits and loss statements or income tax forms
Consider any financial responsibilities you may have, such as payroll or scheduled payments to creditors.
Keep detailed records of all expenses incurred during the recovery process.

This checklist is not intended to identify all hazards, or reflect all requirements of federal, state or local law. Additional measures may be required beyond those identified by this checklist.

Business Impact Analysis

Definitions:

–    Business Impact Analysis (BIA): examines the potential result of disruption to key business functions and collects the information necessary to determine short-term and long-term recovery objectives. A BIA includes analysis of both operational and financial impacts that could stem from the loss of key business functions. The following negative outcomes should be considered as part of a BIA:

–    Business Function: an operation or process that is necessary to the ongoing success of an organization. Examples of business functions include:

–    Recovery Time Objective: the time within which a business function must be restored after a business interruption occurs in order to prevent irreversible damage.

How to use this document:

Every business has distinct business functions in place in order for the company to operate and thrive. Some businesses will identify just a few key functions, while others will identify many. Copy and paste the table on page 2 onto subsequent pages as needed. When complete, reorder the pages by priority, with the highest priority business functions listed first. Delete this initial direction page prior to saving.

How to save this document:

It is recommended that this document be added to your Business Continuity Plan as a PDF to discourage readers from modifying the content. To do this, go to File>Save As. In the “Save as Type” menu, select “PDF.”

Save an editable version to a safe location as well.

Business Impact – Key Function Priority 1

Business Function:  Recovery Time Objective:
Business Category (delete all that do not apply):

Procurement, Logistics and Distribution

Operations

Product or Service Development

Marketing, Sales, and Customer Accounts

Customer and Aftersales Services

General Management and Firm Infrastructure

Human Resource Management

Technology and Process Development
Departments Affected: Key Personnel:
Lost Sales and Income:

One week estimate:

One month estimate:

 Regulatory Fines:
Contractual Penalties:
Short-term Recovery Plans:
Long-term Recovery Plans:

California’s leader in Insurance and Risk Management

As one of the fastest growing insurance agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.

With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.

At GDI Insurance Agency, Inc. we believe that “Our Sole Purpose is to Help Our Clients Achieve and Secure Their Dreams!”

You can download this document here!

Exit mobile version