Disaster Recovery Plan
A disaster recovery plan is a written, tested procedure for restoring a business's critical operations, data, and systems after a disruptive event like a fire, flood, cyberattack, or extended power outage. It is distinct from an insurance policy: it's the operational playbook that determines how fast a business actually gets back to work, and The Allen Thomas Group looks at a client's plan (or lack of one) when sizing business income and extra expense coverage.
What a Disaster Recovery Plan Actually Contains
A functional plan typically documents: data backup locations and restore procedures, alternate work sites or remote-work capability, a communication tree for employees and customers, vendor and supply-chain contingencies, and named roles for who does what in the first 24, 72, and 168 hours after an incident. IT-focused plans (data and systems) are often paired with a broader business continuity plan (staffing, facilities, cash flow), and the two overlap but aren't identical.
Disaster Recovery Plan vs. Business Continuity Plan
| Focus | Disaster Recovery Plan | Business Continuity Plan |
|---|---|---|
| Primary scope | IT systems, data, applications | Whole-business operations |
| Key question | How do we restore systems? | How do we keep operating? |
| Typical owner | IT / operations lead | Executive leadership |
Why Insurers and Underwriters Care About This
A documented, tested recovery plan directly shortens the period of restoration used to calculate business income and extra expense payouts, and some cyber and property underwriters ask for one (or a summary of one) before quoting, especially for businesses with a single physical location or a data-dependent operation. A business without a plan tends to take longer to reopen after a covered loss, which stretches the claim, increases the total payout, and can push a company past its coverage period limit before it's fully back on its feet.
How The Allen Thomas Group Can Help You
We'll help you understand exactly how disaster recovery plan affects your coverage and cost, then shop your policy across 15+ A-rated carriers to find the right fit.
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