When an organization suffers a fire, flood, earthquake or any other significant loss, the immediate priority is usually to protect people, contain the damage and restore operations. However, true resilience is not built at that moment; it is built long before the event occurs.

Business continuity does not depend solely on the response during an emergency. It is the result of decisions an organization has made in advance regarding Risk Management, planning, documentation and its insurance program.

Based on our experience supporting industrial companies in the management of Major Losses, we have found that organizations that recover more quickly are not necessarily those that suffer less damage, but rather those that were better prepared to respond.

Recovery starts before the event

A loss puts much more than physical assets to the test. It also exposes the strength of internal processes, the level of coordination across different areas of the organization and the ability to make decisions under pressure.

For this reason, preparedness should be an integral part of normal business management and should not be limited to emergency response plans.

Key areas that should be reviewed regularly include:

  • Identification of the critical risks affecting operations.
  • Business continuity and recovery plans.
  • Dependence on critical suppliers and essential services.
  • Adequacy and regular updating of sums insured.
  • Availability of technical and supporting documentation.
  • Internal protocols for responding to a loss.

Documentation is also part of business continuity

One of the areas most frequently underestimated is the importance of documentation.

Maintenance records, inventories, drawings and plans, contracts, information backups, response protocols and evidence of decisions taken can be critical both to operational recovery and to the management of a potential insurance claim.

An organization that can access this information quickly has a significant advantage when it comes to accelerating decision-making and technically substantiating its position with insurers and loss adjusters.

The insurance program must evolve with the business

Business continuity also depends on ensuring that the insurance program accurately reflects the organization’s current risk profile.

Investments, increases in replacement costs, inflation, changes in production and the incorporation of new assets all make it advisable to review coverage and sums insured on a regular basis.

Otherwise, a significant event may expose situations of underinsurance, potentially affecting the organization’s ability to achieve an adequate financial recovery.

What makes the difference is that, when a Major Loss occurs, multiple stakeholders become involved: Operations, Risk Management, Finance, Maintenance, Procurement, brokers, insurers, loss adjusters and technical advisors.

Clearly defined roles, effective communication channels and previously established procedures can help reduce response times, avoid duplication of efforts and facilitate a more efficient claims process.

Coordination does not eliminate the impact of a loss, but it can help reduce its consequences.

Prepare today to recover tomorrow

Business continuity does not begin when an emergency occurs.

It begins when an organization identifies its risks, strengthens its processes, maintains its documentation up to date and regularly reviews its insurance program.

Because when a loss occurs, the time to prepare is already over.

At Vantevo Claims Advisors, we support organizations in the strategic management of Risk, Insurance and Claims, helping strengthen their recovery capabilities and contributing to a fair, efficient and amicable resolution when a significant event occurs.