HARTFORD, Conn.--(BUSINESS WIRE)--May. 2, 2013--
At a time when extreme weather events are frequently occurring, leaders
within the United States commercial real estate industry are largely
unprepared to maintain daily business operations according to a recent
IndustryEdge® survey conducted by
Travelers (NYSE: TRV).
The results indicate that 57 percent of real estate owners and managers
are operating without a business continuity plan.
Perhaps most alarming is that 43 percent of the 200 real estate industry
professionals did not consider natural disasters to be an
important business issue. “The lack of preparation could be detrimental
for real estate managers and owners,” said Deb Denker, Real Estate
Industry Manager, Travelers Commercial Accounts. “To survive the
increasing number and severity of disasters, real estate owners and
managers need a strategic business continuity plan to help minimize
downtime, organize a response and deploy the resources needed for a
Even a “minor” property loss can impact the ability to maintain a
building, while a major event can have a material effect on a company’s
operation and financial condition. “It is easy to see how developing a
business continuity plan, testing its effectiveness and carrying proper
insurance can be put aside in the rush of everyday operations, but
organizations need to look at the long-term vitality of their business
and prepare for emergencies and disasters,” said Denker. “Travelers can
help real estate owners and managers through risk control services
designed to help them prevent losses from occurring, through broad
coverage to respond when a loss does occur, and through expert claim
handling to minimize the total cost of a loss.”
One example of Travelers value-added risk control services is the
‘Business Continuity Planning Guide.’ This guide not only helps
companies understand basic fundamentals of business continuity and
disaster management, it also provides detailed instructions in creating
a business continuity plan in four steps:
1. Conduct a Risk Assessment: The overall goal in conducting a
risk assessment is to understand the vulnerability of an incident on
your employees, customers, vendors, property and operations.
2. Conduct a Business Impact Analysis: The goal of the business
impact analysis is developing a list of the functions or processes that
are needed for the survival of your business.
3. Develop Prevention and Mitigation Strategies: Prevention and
mitigation planning and activities are intended to help prevent a
disaster (such as a fire or explosion from unsafe conditions), as well
as reduce the impact or severity of a disaster (such as relocating
critical equipment to a higher elevation in flood-susceptible areas).
4. Conduct Exercises and Testing: It is critical to test your
plan routinely and evaluate its effectiveness, making necessary changes
to improve the plan.
A business continuity plan is not a “one-shot” project. It is an
integral part of an effective business strategy. A completed plan should
be reviewed, tested and updated regularly if it is to be effective when
put into action.
In addition to offering the core lines of commercial insurance such as
property, workers’ compensation, commercial auto, general liability and
umbrella, the Travelers IndustryEdge® products
and services provide specialized coverage for real estate owners and
managers and their properties.
The Travelers Companies, Inc. (NYSE: TRV)
is a leading provider of property casualty insurance for auto,
The company's diverse business lines offer its global customers a wide
range of coverage sold primarily through independent agents and brokers.
A component of the Dow Jones Industrial Average, Travelers has more than
30,000 employees and operations in the U.S., Canada, U.K. and Ireland.
The company generated revenues of approximately $26 billion in 2012. For
more information, visit www.travelers.com.
Source: The Travelers Companies, Inc.
The Travelers Companies, Inc.
Gail Van Cleaf, 651-310-6902