What does Business Continuity Plan mean? Read on to discover the definition & meaning of the term Business Continuity Plan - to help you better understand the language used in insurance policies.
Business Continuity Plan
A written document summarizing steps to take in the event of a disaster manmade or natural assessing the business's ability to recover from the loss event and subsequent business interruption. It is a hedging tool against the impact of a disruption on an organization. It typically includes estimated recoveries for loss of business income due to damage to: the business's own locations, key suppliers/customers, adjacent buildings, key objects (such as bridges, highways), and utility interruptions. The BCP outlines the decision-making framework and advanced arrangements and procedures that enable an organization to maintain an acceptable level of operations in the event of a disruption.
We hope the you have a better understanding of the meaning of Business Continuity Plan.