Business continuity is simply about ensuring your business can keep going when something unexpected happens. It’s the strategies and plans you put in place to minimise disruption, recover quickly, and protect your people, customers, and reputation.

Too often, insurance is thought of separately – something you deal with once a year at renewal, or when a claim is necessary.

But in reality, insurance should be seen as a core element of your resilience plans. It doesn’t just help you respond to a crisis; it provides the financial foundation that makes recovery possible.

The current risk landscape

Today’s business environment is more unpredictable than ever. From cyberattacks and supply chain delays to extreme weather events and regulatory changes. Without robust business continuity plans combined with the right insurance cover, organisations risk being caught unprepared.

For example, a manufacturer may have detailed business continuity plans for rerouting production in case of a facility shutdown, but without insurance to cover the costs of relocation and lost income, those plans may not feasible.

Similarly, a retail business may have policies in place to deal with IT outages, but without cyber insurance, the financial impact of a data breach could still be devastating.

What role does insurance play in Business Continuity?

Insurance isn’t just about claims management. It’s about enabling recovery, not just handling the immediate problem. When aligned with business continuity planning, insurance ensures that businesses can access the necessary support needed to survive disruption and continue operating.

Tailored insurance cover, built around your specific risks and continuity needs, can be the difference between riding out a crisis or shutting your doors for good.

Every business has unique risk profiles which is why engaging your insurance broker as a partner in business continuity planning is advised. Their role shouldn’t be limited to policy renewal; they should be part of discussions about risk, resilience, and strategy.

Equally important is educating leadership teams. Senior decision-makers must understand how insurance underpins operational resilience in order to make informed decisions.

Financial protection is key for survival

Without sufficient insurance cover, even the best continuity plans can collapse under financial pressure.

Business interruption insurance, for example, can cover loss of income if operations are halted due to fire or flood, ensuring staff can still be paid and key expenses covered.

Cyber insurance can provide the resources to recover from an attack, from forensic investigations to customer notifications. Credit insurance can protect cash flow if a major client defaults.

Integrating insurance into business continuity strategies

To fully integrate insurance into business continuity planning, businesses should follow a structured approach:

• Risk Assessment: Identify your most critical functions and vulnerabilities.
• Gap Analysis: Review where existing business continuity plans and insurance cover don’t align.
• Scenario Planning: Test whether your policies would respond to specific events such as fire, cyberattacks, or supply chain breakdowns.
• Policy Review: Ensure coverage reflects your recovery objectives, not just minimum compliance.
• Regular Updates: As your business evolves, keep both your BC plan and insurance up to date.

When aligned, insurance and business continuity plans provide both operational resilience and financial protection, giving businesses the best chance of surviving disruption.

By engaging your broker early, tailoring cover to your risks, and integrating insurance into your continuity planning, ensures you are best prepared to face any unforeseen problems.