Continuing Your Business After All The Aftermath

By Nelson Lam
Rob Swift, Mike Gardner, and Forrest Artz presented Thursday at the 13th Risk Management Conference presented about business interruption coverage. With natural disaster occurring spontaneously and without notice, does your airport have a continuity plan and will your business interruption income be covered?

Granted that your airport does purchase business interruption coverage, the first thing all three speakers mentioned was read your policy. As a number one rule of risk managers, never assume; read the fine prints – know the definitions as they may be defined differently in your policy. Swift mentioned, know your return time objective – understand when you need to have your business back up and running, and build your strategy in accordance to it. Additionally, know the return point objective – how much data can you afford to lose before the point of no return.

Do you have property insurance that goes with your business interruption coverage? Well even so, there are many points to consider. If you have water damage coverage for your property, does that coverage cover mold damages as well – know the exclusions of the coverage and once again read your policy. For your equipment, are they all covered or just the high value dollar items? As a risk manager purchasing such coverage, do consider that every small dollar value item not on the balance sheet can add up exponentially.

As mentioned by Gardner, for a business interruption claims, talk to your insurers, your assessors, and peers right away. Understand the situation that you are in. Document, document, document as there will be large discussions amongst the risk managers and the Insurers of what the income loss is as a result of business interruption; the documentations will come in handy. Lastly, if you need help, hire or ask for help. Include additional professional fee in your business interruption coverage to ensure you can hire help when you need it. Nothing is worse than to be in a troubled situation where you lack the knowledge or experience, and you have no resources to go to. The risk managers and all the risk professionals here at the Risk Management Conference are here to help.