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Catastrophic Loss – Is Your Company at Risk?

- November 21, 2018 by Leslie Stoll, CSP, ARM (View all posts by Leslie)

The President and the Vice President of the United States do not travel in the same car or airplane. The United States government created this rule as a way to reduce the risk of suffering the loss of both leaders at the same time. When the President gives his State of the Union Address, one member of Congress does not attend because there must be a contingency plan in case the unimaginable occurs. The United States has these rules to protect the country and allow “business as usual” to continue on.

Organizations should consider their exposures and what controls they have in place to prevent catastrophic results that could lead to your company’s demise.

Ask yourself these key questions:

  • Do all the leaders in your company travel to conferences on the same airline flight?
  • Do your work crews travel in the same company vehicle to work sites?
  • Could you company survive the loss of 4 or 5 employees involved in a deadly vehicle accident? 

Recently, I learned of a car accident involving a work crew. Five employees were traveling to a jobsite when they were involved in an accident. Three employees suffered horrible injuries and two employees died in the accident. The company was small and could not recover quickly from this loss and suffered huge profit losses as a result of not being able to service their customers.

As a general rule, ICW Group recommends that the number of employees in one vehicle be no more than three; if you have not considered the impact of such a loss, we recommend that you take a moment to address this with your management team to develop a travel policy.

As a business owner, you need to consider what would be a catastrophe for your company. Many companies have controls in place such as back up machinery, secondary material suppliers and back-up generators. But, have you thought about your human resources? Are you taking the proper measures to ensure that a tragic accident doesn’t change the path of your company for good?