Why this review matters
For a manufacturer, the largest loss may be the income impact after property or equipment damage. A useful review follows the production process to identify single points of failure and realistic recovery options.
Information to prepare
- Production flow and critical equipment list
- Equipment replacement lead times and service dependencies
- Key suppliers, customers, and outsourced processes
- Revenue, variable expenses, and continuing expenses
- Alternative facilities, reciprocal agreements, and continuity plans
Decisions to discuss
- Business income and extra expense period
- Equipment breakdown and utility interruption
- Dependent property and supply-chain considerations
- Product liability, recall, cyber, and workers’ compensation
Common pitfalls
- Assuming building repair time equals full recovery time
- Ignoring custom equipment lead times
- Treating every supplier as replaceable
- Failing to test data backups and production workarounds
Frequently asked questions
What is a single point of failure?
It is equipment, a supplier, a utility, a process, or a location whose loss could materially interrupt production because there is no timely alternative.
Why estimate recovery by process?
Repairs, permits, equipment ordering, installation, testing, inventory rebuilding, and customer requalification can each add time beyond physical reconstruction.
Coverage descriptions are general. Availability, eligibility, limits, exclusions, and policy terms vary. Review actual policy documents and requirements with an appropriate insurance professional.