How is disaster planning different from buying insurance?
A. Insurance is designed to provide financial reimbursement for certain monetary losses incurred by businesses. Insurance is not intended to actually help businesses resume operations or maintain customer service levels. Having adequate insurance coverage does not guarantee a business will survive a catastrophe intact with pre-loss customer-base and revenues. In other words, a business with a new building and no customers will experience difficulty surviving. Disaster planning involves the process of resuming operations.
