Disasters can happen to anyone, including companies. We never know when the disaster will occur, but we can prepare ourselves in advance. If you have a company, the preparation you can make is to buy disaster recovery insurance coverage. By preparing such protection, the company can quickly recover from the disaster.
Examples of disasters that can disrupt company operations include cyberattacks, natural disasters, power outages, and many other disasters. Companies must recover quickly after a disaster if they don’t want to gain bigger losses.
Key Benefits of Disaster Recovery Insurance Coverage
An insurance company is a service that protects its consumers. Below are some of the advantages you may have if you purchase disaster recovery insurance for your company.
1. Minimizing Property Damage
Natural disasters such as earthquakes and floods can cause damage to company property. If you’ve covered your company with disaster recovery insurance, then you can feel a little more relieved.
All damage caused by the disaster will be reimbursed by the insurance provider. Replacing damaged property can also minimize injury to staff following a disaster. Thus, protecting the company with disaster recovery insurance is an excellent solution to save the company from huge expenses.
2. Ensuring the Continuity of the Computer
The computer is an essential property as it contains all of the company’s data. These devices can be damaged by natural disasters or cyberattacks. If it is not dealt with quickly, it will disrupt the company’s sustainability.
Cyberattacks do not physically damage the computer but can lose essential data in it. If the malware attack is not recovered immediately, the company will not be able to access the data, so it has the potential to go bankrupt.
Insurance providers will usually provide this coverage to protect your computer from cyberattacks or data theft. As a result, computer continuity is ensured so the company operates normally and serves customers again.
3. Mitigating Customer Defections
Disaster recovery insurance coverage also provides benefits in dealing with customer defections. Through the coverage provided, the insurer will work to reduce customer defections during a business closure due to a disaster.
After the post-disaster recovery process is complete, the insurance company will also assist the company in optimizing its business. Thus, some customers who defected were able to come back again.
4. The Company is Allowed to Make Invoices
Invoices are an essential element because they are related to payments. After a disaster, a company may lose invoices or be unable to pay bills. Your company will enable you to pay debts if you already have disaster recovery insurance.
The insurance provider will allow your company to make invoices. In addition, disaster recovery insurance coverage also enables you to post ongoing business receivables. As a result, your company can pay off debts even after experiencing a disaster.
5. Ensuring the Company Does Not Go Bankrupt
A disaster is an event beyond control that can cause very severe damage. In more serious cases, the company can no longer operate due to bankruptcy.
If you don’t want this to happen to your company, be sure to insure it with disaster recovery insurance coverage. The insurance provider will ensure that your company does not go bankrupt. Usually, professional insurance companies have scenarios before a disaster occurs, during a disaster, and after a disaster.
That is why insurance providers provide coverage that can ensure the continuity of your company so it does not go bankrupt. They have effective strategies for recovering the company after a disaster.
5 Key Features You Should Know About a Disaster Recovery Program
To support your business continuity in the event of a disaster, be sure to know the key features that must be included in disaster recovery insurance. Please find the following information:
1. Know Your Threats
As a company owner, you must know the potential threats that can be faced by your company. These threats include natural disasters that are prone to occur in company areas, civil unrest or war, cyberattacks, smooth internet connection, and so on.
By knowing what threats your company might face, you can also look for insurance providers who can provide comprehensive coverage for your company’s needs.
2. Know Your Company Assets
To choose the right coverage to protect your company from disaster, you must also identify your company’s assets. To find out all these assets, you need to create a team to record assets used for business operations. You can divide the company’s assets into three categories such as:
- Critical assets are without these assets the company cannot operate, for example, an email server.
- Important assets are assets that can support the smooth running of company activities, such as projectors for media presentations.
- Other assets are assets that do not have a major impact on the company’s activities.
By knowing the company’s assets, you can prioritize which assets need to get the maximum coverage from disaster recovery insurance.
3. Decide on your RTO and RPO
You also have to determine the RTO (Recovery Time Objective) and RPO (Recovery Point Objective) to get the proper disaster recovery insurance coverage. RTO will allow the company to quickly resume normal operations after a few minutes of a major failure.
Meanwhile, RPO is a backup for storing company data which occurs every four hours. Thus, the risk of data loss due to major damage can be minimized and the company still has backup data.
4. Provide a Disaster Recovery Site
To avoid data damage or loss, companies need to provide a disaster recovery site. You can replicate data to on-site cold storage, on-site warm backup, off-site cold storage, and off-site warm backup. Given this is significant, make sure disaster site recovery is included in the coverage of the insurance provider you choose.
5. Test the Backup and Restoration Service
If the insurance provider provides the service features mentioned in the previous point, you need to test the backup and restoration service. Thus, you can find out whether the system is working properly or vice versa. You can also get accurate results after testing.
Do You Want to Get Disaster Recovery Insurance Coverage for Your Company?
To sum up, disaster recovery insurance coverage is the absolute protection you need to save your company from losses or bankruptcy due to a disaster. Insurance coverage not only compensates for property damage but will also help restore your business to normal.