Business interruption can be detrimental to any company,especially midsize businesses. According to The Hartford, mostmidsize businesses have business continuityplans, but few have actually tested them. Anunproven continuity plan poses a risk for businesses, as they mightbe unable to meet client needs due to an interruption in theiroperation or lose revenue due to a supplier issue.

According to a recent survey conducted by The Hartford of over 500 midsize businessowners and C-level executives in the U.S. with annual revenues of$10 million to $1 billion, 59% had a formal, documented continuityplan; 33% had an informal, verbal plan; and 8% didn't have a planat all. Of those with plans, only 19% of businesses had testedtheir plans.

Additionally, the survey found that 36% of midsize businesseshad been unable to meet a client need due to an interruption inoperations, putting the client relationship at risk. Of that 36% ofbusinesses:

  • 57% used an alternate supplier andavoided any direct impact on their clients
  • 39% lost business to other suppliersbut had clients return once their business resumed operations
  • 9% lost clients that did notreturn

The survey also found that midsize businesses also need plansfor supplier interruption. According to The Hartford, 84% ofbusinesses surveyed rely on suppliers, vendors or consultants. Fourin 10 had suffered a supplier interruption, and 32% had lostrevenue due to a supplier problem.

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