CEOs, CFOs and risk managers, regardless of industry, buy insurance. They buy insurance to protect their company from losses, sometimes catastrophic losses.
Many times these losses have nothing to do with the ability of the company to continue to do business. A slip and fall, a bit of property damage, an accident at a client's office; these incidents, these losses hardly impact business. In fact, many times property and casualty insurance is the disaster preparedness plan or the business continuity plan. Something happens outside the normal course of business, insurance provides the resources to pay for it. That is the plan.
For clarification, let us go over the difference between business continuity (BC) and disaster recovery (DR). Business continuity, in its essence, aims to manage all strategic corporate assets, vital facilities, supply chains, human resources and day-to-day business processes proactively to ensure that business functions are performed in either an optimal or acceptable form.
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