Small and medium sized business (SMBs) in the UK are missing out on possible insurance deals that could be available to them if only they had a business continuity plan in place. This is according to a survey conducted by Cloud Direct of more than 500 UK SMBs.
The survey of 558 business and IT decision-makers revealed that 54% of respondents were unaware there were insurance benefits to having a business continuity plan, yet the British Insurance Brokers’ Association (Biba) has long committed to supporting business resilience measures with reduced insurance premiums and excesses. To promote this stance in 2012, they conducted a joint survey with the Cabinet Office, which found that 83% of insurers questioned would give a discount or improve terms to a business interruption policy if a business continuity plan were in place.
The survey also found that almost one in six UK businesses (15%) still don’t know what a business continuity plan is. This is despite 44% of businesses having experienced some form of business disruption – either through human error, IT failure or natural disaster.
Eliza Rawlings, managing director of Cloud Direct, said: “It’s frustrating that businesses don’t know about the insurance perks and we hope this survey has helped some businesses from that point of view.”
“But it’s also a little disconcerting that nearly a third (32%) of businesses don’t have a business continuity plan in place. Just think of the recent storms, floods and power outages that have made businesses suffer terribly. What if that was one of your key business partners or suppliers and your business suffered as a result? A really good business continuity plan will help those businesses anticipate, prevent, mitigate and recover from those kinds of unplanned events.”
No organization is exempt from disruption, whether you are public, private, or third sector; or whether you are small, medium or large, it is vital that you look at what the threats are to your organization, what the potential disruptions could be and then put a fully tested plan in place to deal with them.
As the 2014 Counting the Cost report showed, the cost of not having an effective business continuity plan can be high, but organizations do not need to have a disaster in order to see the return on investment of having a plan. One such ROI is a reduction in insurance premiums.