Insurers should recognise and reward companies who put in place compliant and regularly tested business continuity plans, said ICM Computer Group.
The business continuity services provider said insurers were not allocating enough time to evaluating the effectiveness of business continuity plans, and by not doing so are not assessing the real level of risk.
ICM director of business continuity Mike Osborne, said: “Fires, terrorism (including so called cyber terrorism), power failures and natural disasters all impact on business operations.
“If firms do not have continuity plans in place they are leaving themselves extremely exposed to potentially enormous losses.
“However, if the insurance industry is not looking in detail at the plans that are in place, they will not be able to charge the appropriate premiums, and could be overcharging many hundreds of firms.
“The government and regulatory organisations such as the FSA are placing greater emphasis on having a business continuity plan, but businesses need to see that compliance to corporate governance is recognised and rewarded.”
ICM said it had just opened its tenth specialist regional business continuity centre in Bristol, representing an investment of £5m.
