Disaster Planning for Biotechnology Companies

Frank Goudsmit
Chubb Group of Insurance Companies

DOI:https://doi.org/10.5912/jcb529

Abstract:

An earthquake in Japan cuts off the supply of key equipment and/or pharmaceutical ingredients to a biotechnology company with facilities in the U.S.  High winds and flooding from a hurricane along the East coast—home to a notable number of biotechnology facilities—causes catastrophic property damage. What these cataclysmic events have in common is the wide scale business interruption that is left in their wake. While no company is immune to the threat that natural disasters pose to operations, biotechnology companies also face an increased risk of manmade disasters, from chemical spills and steam explosions to fires intensified by combustible dust. A business interruption of any kind jeopardizes a company’s critical output and its financial security—a reality that some never recover from. In order to withstand the crisis and return to business, developing and implementing a business continuity plan, which includes the purchase of insurance protection, is integral to the recovery process. Although the development and implementation of a business continuity plan may require a serious initial financial commitment, it can help protect your biotechnology firm against greater physical and financial loss.

Keywords:disaster planning ,business continuity plan ,property risk ,en ,