A detailed, well thought out business continuation/contingency plan should be able to help a company make the necessary evaluation.
Where do I have this information?
This information is contained in the working knowledge of your business. It may already be part of other business plan documentation.
The basics are:
- Internal to company (other production lines/sister plants)
- What company resources do you have at other locations?
- Can work be shifted?
- Can the other locations pick up the work?
- Will this lead to extra costs?
- Redundant raw materials, equipment, production lines
- Are there substitutes available?
- Can the work be shifted?
- Is the equipment easy to obtain?
- Agreements with other companies / competitors / vendors
- Will they be willing to help you out?
- Are these agreements in writing?
- Have these plans been tested?
- Is it feasible?
- Do these companies / competitors / vendors have the capacity to help you out? And more importantly, would they?
A written plan should be in place and should include:
- Specific procedures
- Telephone numbers of key sources and employees
- Key decision makers
- Timetables and action plans
- Provisions for testing and implementation
The Contingency Plan should also address dependent properties.
When establishing values, the insured should not overlook cost to operate contingency plans.
There are a number of factors that could reduce or increase your business down time.
