What is a Business Continuity Plan?

A Business Continuity Plan is a document that outlines the processes you should follow if there is an unplanned interruption to your business operations. It will help you prepare for and recover from the disruption quicker.

Why Do I Need One?

According to The Rough Notes Company, disasters happen to small and large businesses alike. This is the percentage of U.S. companies that have had business operations interrupted by peril:

• Power Outage 72%
• Computer Hardware Problems 52%
• Telecommunications Failure 46%
• Software Problems 43%
• Human Error 34%
• Lightning 34%
• Flood 17%
• Fire/Explosion 14%
• Hurricane 12% 

And while most companies have had business interruptions, only 30% of small businesses have a business continuity plan, according to Travelers Insurance.

How Does a Business Continuity Plan Work?

To help businesses build and maintain a plan, Insurance Institute for Business & Home Safety has a free, detailed business continuity planning toolkit. Here is a summary of what a business continuity plan should include: 

• Your risks
• Your operations
• Your employees
• Your equipment
• How to reduce potential disruptions
• Your key customers, contacts, suppliers and vendors
• Your Information Technology
• Your finances
• When to test and update your plan
• Where to go for help