Why your company needs a business continuity plan

11 years ago · by Shawna Kreis · 0 comments

Why your company needs a business continuity plan

Business continuity planning is one of the most critical components of any recovery strategy.

Companies today face an unprecedented number of exposures.

The frequency and severity of weather-related events seem to be increasing. Reliance on a complex network of technology and supply chains is expanding. Both leave businesses susceptible to a variety of existing and emerging risks.

Managing these risks is key to the survival of any organization.

Why Business Continuity?

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MISCONCEPTION:
“Our people will know what to do in an emergency.”

REALITY: Even the best employees cannot be expected to know what to do when disaster strikes. Leaving each to respond in his or her own way only adds to the confusion of an event. Having a well-documented business continuity plan in advance, and training your employees to follow it, gets everyone on the same page — helping ensure an organized, safe and timely recovery.

Scurich Insurance Services, Watsonville, CA, Business Insurance

MISCONCEPTION:
“We have insurance to cover our losses.”

REALITY: Insurance alone is NOT a business continuity strategy. Proper coverage is a significant and important part of the plan. But it may not fully cover some of the peripheral damages from an event, like loss of customers, loss of market share, or setbacks in development or release of a new product. Consult with your insurance agent to understand what is and is not covered under your policy.

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MISCONCEPTION:
“We don’t have the time to develop a business continuity plan.”

REALITY: Time spent developing and maintaining a business continuity plan is an investment in your company. Your fixed costs will continue after an event whether or not you are open for business. The faster you can return your operations to normal, the more likely you will recover from the event successfully. With so much at stake, your company can’t afford to NOT have a plan.

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MISCONCEPTION:
“Business continuity and disaster recovery planning are the same.”

REALITY: Business continuity is a proactive plan to avoid and mitigate risks associated with a disruption of operations. It details steps to be taken before, during and after an event to maintain the financial viability of an organization.

Disaster recovery is a reactive plan for responding after an event. It deals with the safety and restoration of critical personnel, locations, and operational procedures after a disaster, and is a part of business continuity planning.

A business continuity plan is one of the best investments your company can make.

From Hurricane Sandy and 9/11 to the tornadoes in Oklahoma – companies that proactively consider how to respond to events are the first to get back to business, often at the expense of competitors.

A predefined business continuity plan, combined with the proper insurance coverage, maximizes the chance of a successful recovery by eliminating hasty decision-making under stressful conditions. It details how to get businesses back on track after a disruption – in the most thoughtful way possible.

Think your business can withstand a disaster? Think again.

Twenty-five percent of businesses do not reopen following a major event.¹ It does not take a major catastrophe to shut down a business. In fact, seemingly minor disruptions compared to widespread natural disasters can often cause significant damage – power failures, broken water pipes, or loss of computer data.

A Travelers study found that 48 percent of small businesses are operating without any type of business continuity plan…Yet 95 percent indicated they felt they were prepared.

Is your business continuity plan predominately an insurance policy?
Is it predominately an emergency response or evacuation plan?
Is it predominately an IT or data recovery plan?
Is it something you developed that sits in a binder on a shelf?

If you answered “Yes” to any of these questions, then your business continuity plan may be giving you a false sense of security.

Natural disasters are more common – and costly – than you may realize.

In 2012, nine of the top 10 most expensive world-wide natural disasters happened in the United States. With $77 billion in insured losses worldwide, 2012 was the third costliest year on record. The first was 2011, when $126 billion in insured losses were reported.²

Business continuity planning for a competitive advantage.

An alarming 48% of business owners surveyed by Travelers in 2012 said they have no plan in place. That means business continuity planning is more than smart business – it helps your company remain better positioned to recover from the business interruption, property damage, financial impact, and loss of life that a natural disaster or man-made event may cause.

The time for business continuity planning is now.

Planning for a disruption or catastrophic event should happen when business is going well, not when disaster strikes. Having a pre-defined, well-documented business continuity plan that clearly communicates how your business will respond during an event can help mitigate risk – and is one of the best investments your company can make.

¹Source: Insurance Institute of Business & Home Safety; http://www.disastersafety.org/
²Source: Insurance Journal; http://www.insurancejournal.com/news/national/2013/03/27/286235.htm

11 years ago · by Shawna Kreis · 0 comments

Property Insurance for Multiple Locations: what does a loss limit do for you.

Loss limit policies insure property on an occurrence basis to a limit of the probable maximum loss rather than an actual total property value.

If a manufacturer has ten locations in ten states each valued at three million dollars including contents, the probable maximum loss might be three million dollars. No one storm, earthquake, or fire will destroy any two in one occurrence. If all ten locations are within a mile of the east coastline, a hurricane might destroy several plants, for a probable maximum loss of, say for example, nine million dollars.

In the first case, the policy limit might be four million, in the second, maybe ten rather than thirty million.

This method of valuation provides insurance for very high value risks or when some portion of the risk is hard to reinsure.

Reinsurance is a spread of risk system for all insurance companies. For very high value risks, sometimes it is not possible to reinsure the total value of property. Insurers and reinsurers each have a maximum limit per loss.

Windstorm, flood and earthquake hazards can be difficult to insure. Insuring all locations with a single maximum loss is a way to get some insurance for all locations.

Loss limit policies tend to be more expensive because total losses are theoretically many more times as likely.

Co-insurance became popular with insurance companies because insureds only wanted to buy enough insurance for the probable maximum loss on a single property. Loss limit policies can be viewed as total protection without a coinsurance clause. The insurance underwriter goes into the process with eyes wide open about pricing each occurrence for ten potential first dollar losses or one catastrophic loss.

The principles of spread of risk and actuarial loss prediction remain constant but apply differently.

If you have a portfolio of properties spread geographically, with perhaps a few in hurricane or earthquake zones, review your loss limit options.

11 years ago · by Shawna Kreis · 0 comments

When Is it Dangerously Hot to Work?

High heat and construction work are simply not compatible. Yet, the work must get completed. Workers must wear protective clothing and gear which diminishes the body’s capacity to shed heat. This fact combined with high heat creates specific exposures which require vigilant monitoring.

Short-term exposures to heat and humidity:

Prevention: Drink plenty of water – a good test is the employee must urinate every three hours at a minimum, two hours is better. If they do not need to urinate, they are not getting adequate fluids. Wear breathable clothing such as cotton. Work in the shade or indoors as much as possible, take frequent water breaks in the shade.
Heat exhaustion: the stage prior to heat stroke when many symptoms from dehydration can be noticed. Any dizziness, nausea or vomiting, cramping, or sudden weakness requires immediate attention. Headaches, blurred vision or unusual fatigue can be signs of heat exhaustion. Rest the worker in the shade, loosen tight clothing and provide water. Observe the employee for several minutes. If they quit sweating or any symptom becomes worse, or they breathe rapidly or have a quick pulse, seek emergency medical help immediately.
Heat stroke: LIFE THREATENING. Add these to the heat exhaustion symptoms:
- Hallucinations, confusion, disorientation, illogical behavior
- High body temperature, red or pale skin, difficulty breathing
- Unconsciousness or coma

Seek immediate professional help for these symptoms.

Bacteria carrying insects love this weather. Lyme disease and West Nile Virus are not uncommon. Prevention includes spraying mosquito deterrent and checking for ticks.

Long-term exposures include skin cancer. Wear protective clothing and use sunscreen.

Common sense goes a long way to prevent over-taxing workers. If a concrete pour is scheduled for an extremely hot day, postpone. You’ll spare your employees heat related discomfort, and the odds of getting the concrete in before it sets is remote at best.

Remember your machine operators too. Check on them throughout the day and carefully observe their performance. Any signs of erratic behavior needs to be addressed immediately. Even air conditioned cabins can create dehydrating condition in the hot sun.

If you want your crew working Friday, you need to supply plenty of water and shaded rest breaks Monday through Thursday. The body can only take so much heat.

11 years ago · by Shawna Kreis · 0 comments

Review Class Codes and Descriptions: technology changes operations

Technology associated with construction has dramatically changed operations. Carefully check the class codes and their descriptions to assure proper premiums.

Years ago, 5606 – contractor supervisors – served to describe on site personnel who actively performed construction activities while managing the site. The rate was equivalent to site carpenters. That code has evolved into the computer carrying, service providing construction managers and executives who document the construction process. The rate is closer to outside sales representatives now.

Even excavation and site work is being dramatically changed by GPS technology. Now computers design a cut and fill pattern with efficiency. Labor is more involved in checking the geotechnical and environmental properties of the soils rather than the actual movement of them.

As production technology improves, new sub-codes develop to reflect the decrease in risk. Painting, carpentry, electrician and other trades now use a selection of eight or ten separate codes to describe exact activities. More components are built in shops and brought to the site. This process can change the class code of the installers and the builders.

The trend is towards more computer driven operations. Less labor, more specialists. As this trend continues, class codes will be added, deleted and the descriptions changed. There are currently over seven hundred class codes. Some are antiquated with new meanings – like a ship chandler is now a hardware store.

It pays to become familiar with the classifications. If your business has been active for many years, the “governing code” may be incorrect. The governing code is the catch-all for your business which best describes the overall operation, more obvious in manufacturing. Corrugated box manufacturing has been reorganized into several class codes. Technology has separated the manufacture of cardboard and corrugated cardboard into laminating processes, cutting and folding processes, and fully integrated operations.

Read your relevant class codes and think about which one reflects your operations. Or ask your agent to do it for you.

11 years ago · by Shawna Kreis · 0 comments

Top Five Dietary Changes That Reduce Heart Disease

Every year, heart disease causes one out of four deaths, reports the Centers for Disease Control and Prevention. Reduce your risk when you make five dietary changes.

Eat More FruitsFruits rich in vitamin C and fiber protect you from heart disease. So, eat more citrus fruits, which are loaded with vitamin-C, and fruits with fiber-rich skin, including apples, pears and peaches. Easily add more fruit to your daily menu when you:*Serve fruit salad as a side dish during every meal,
*Display fruit on the counter where you’ll see it every day and
*Pack fruit in your lunch box.
Stock up on VeggiesGreen, leafy vegetables, such as spinach, kale and broccoli, protect you from heart disease. They’re easy to add to your daily diet when you serve salad for dinner and toss green veggies into soups, eggs and rice.
Pump up the Whole GrainWhen you consume 25 grams of whole grains each day, your risk for developing heart disease decreases by 15 percent. Pump up your whole grain intake with oatmeal, brown rice and rye.
Reduce Fat IntakeSaturated fats are one of the leading causes of heart disease. Easily reduce the amount of fat you consume when you:*Switch to skim milk
*Use olive oil instead of cream-based sauces and dressings and
*Try butter alternatives.
Eat Less MeatMeat, especially red meat, is often high in saturated fat, which causes high cholesterol and clogged arteries. For optimum heart health, go vegetarian because it may reverse existing cardiovascular disease. If you have to eat red meat, limit it to three ounces a day.

Reducing heart disease is possible when you eat a heart-healthy diet. Start by making these five dietary changes. Then, talk with your health insurance agent about additional ways you can reduce your heart disease risk and live a healthy lifestyle.

11 years ago · by Shawna Kreis · 0 comments

Grill Fruit and Veggies to Boost Your Summer Health

You already cook meat on the grill. Why not add fruits and veggies? They help you boost your summer nutrition and taste delicious.

Choose Fresh Produce

Whether you decide to grill pineapple, watermelon, corn or asparagus, make sure it’s fresh. Ideally, the produce you grill should be firm and picked within the past three days.

Brush on the Oil

You’ll want to stock quality canola, olive or coconut oil in your pantry before you grill produce. It adds extra flavor to your grilled produce and a light coating works together with foil packets or a non-stick grate to ensure the fruits and veggies don’t stick to the grill.

Mix a Few Marinades

In addition to the oil, prepare a few marinades. Olive oil infused with herbs, raspberries, mint or other flavorings, honey and low-fat or Greek yogurt enhance the taste of your grilled produce.

Leave the Skin On

The skin of many fruits and veggies contains healthy nutrients. So, leave veggie skins on when you grill them and maximize the nutrient content of the grilled veggies you eat. Most fruits, however, grill better without the skin.

Pre-Cook Some Veggies

Certain veggies cook more evenly on the grill when you pre-cook them in the kitchen. To prep asparagus, beets, broccoli, parsnips, potatoes, squash and carrots for grilling, steam or blanch them until they’re al dente. Alternatively, tomatoes, sweet potatoes, peppers, mushrooms, onions and eggplant will cook evenly when you grill them raw.

Use the Right Temperature

When you cook fruits and veggies over moderately hot coals, the outside could cook faster than the inside. You’ll want to rotate the produce between direct and indirect heat so that each piece cooks evenly and completely.

Whether you cook for one or 100, prepare fruits and veggies on the grill and enjoy a summer nutrition boost. They help you stay healthy, and you’ll feel good knowing that you’re helping your family and friends stay healthy, too.