Insurance and continuity are different tools
Insurance compensates part of the financial losses after an event. Business continuity (BCM) reduces the downtime itself and helps you recover faster. One does not replace the other: they are two layers of protection.
Why they are used together
- BCM shortens downtime, and so it reduces the size of the loss itself.
- A mature continuity system and quantified risks help in negotiations with the insurer and can influence the terms.
- Insurance covers the residual financial risk that continuity measures cannot remove.
First we assess the risk (BIA) and reduce downtime with a plan (BCP), then we insure what remains.
Insurers increasingly ask for proof that a site is protected. The drone strike readiness check brings the loss calculation and the measures taken together in one pack.
Frequently asked questions
If the business is insured, does it need BCM?
Yes. Insurance compensates part of the direct losses after an event, but it does not shorten downtime or bring back lost customers. BCM reduces the damage itself, so the two are used together.
Can BCM affect insurance terms?
A mature continuity system and quantified risks are an argument in negotiations with the insurer and can have a positive effect on the terms.
From the risk register to management decisions
Check whether your risks reach the people who make decisions. The dashboard shows the status on one screen; the turnkey system makes it work in practice.
