By Priya Cherian Huskins and F. Lane Finch, Jr. Your company strives to grow its businesses and operate
efficiently. However, focusing on growth and continued operations is not enough. You must also
evaluate the potential impact of a natural or man-made disaster that disrupts your supply chain,
hijacks your computer system, or temporarily closes your business. These disasters may take the
form of hurricanes, floods, fires, and cyberattacks. Whatever the form, disaster will strike your
company. Are you ready for it?
■ ■ The property policy. The typical
property policy covers damage
from fire, windstorms, hail,
civil unrest, and explosions.
However, flooding is typically
excluded under these policies.
■ ■ Business interrupted. There are
two key components to business
interruption planning: ( 1) devise
a business plan to minimize the
interruption of your company’s
business in the aftermath of a
natural or man-made disaster,
and ( 2) insure against those
things you cannot avoid.
■ ■ The digitalage. As a first line of
defense against cyberattacks and
ransomware, consider how your
company will react to several of
the most likely threats and seek
to insure against those risks.
■ ■ Currentlyunattainable.Insurance
may not cover lost customer data as
a result of a data breach. In-house
counsel should carefully review
company policy to understand the
parameters of coverage for loss
of data — particularly another
person’s data that may be in
your care, custody, or control.