Before the storm

It's no secret that creating a firmwide disaster recovery plan helps ensure business continuity in the face of crisis, but having one in place could ultimately affect your insurance premiums as well.Gary Marchitello, managing partner and property practice leader at New York-based Integro Insurance Brokers, said that disaster recovery plans are not mandatory when negotiating premiums. But presenting one to your insurer can save you between 25 and 50 percent -- particularly if you are located in a catastrophe-prone area.

"If you consider a firm with no backup plan that resides in a catastrophe zone, the underwriter will have to assume that if the firm's physical location is damaged or destroyed, their business will be interrupted, they will lose customers and their revenue stream will be curtailed, if not eliminated indefinitely," he said. "Compare that to a firm that has a business continuity plan, where they have a place to physically relocate their employees and access to communication devices, computers and data. In other words, they can continue serving their clients with little or no interruption, and consequently little if no loss of revenue. This can generate a 50 percent difference in rates or premiums."