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Business Continuity Plans reduce insurance premiums and save businesses

February 2012

New research from the British Insurance Brokers’ Association (BIBA) and the Cabinet Office has revealed that the business continuity plans are likely to stop businesses from failing after a major disruption such as a flood or fire.

The majority (96%) of respondents with sufficient information on business continuity felt that having a business continuity plan in place would keep businesses trading or reduce the costs they would incur when they would have otherwise likely failed, or it seemed to reduce the cost of the disruption significantly. In addition to keeping businesses running, 62% of respondents said that those with plans benefited from premium discounts, reduced excesses and doors opening to new insurance markets.

Insurers supported this too, with 83% of those asked, saying that they would provide a discount or improved insurance terms to a business interruption policy if a business continuity plan was in place.

For more informatio, please visit the BIBA website by clicking here.