Business Continuity Plans for smaller tpa firms

[TPApril]

Im curious what other smaller tpa firms (<5 ees) set up for business continuity plans? Customers are starting to ask. If looking to share thoughts more privately, dont hesitate to msg me directly. all thoughts appreciated!

[Larry Starr]

4 hours ago, TPApril said:

Im curious what other smaller tpa firms (<5) set up for business continuity plans? Customers are starting to ask. If looking to share thoughts more privately, dont hesitate to msg me directly. all thoughts appreciated!

Less than five WHAT?

[TPApril]

12 minutes ago, Larry Starr said:

Less than five WHAT?

Less than 5 employees.  Yes, context is always helpful :).

[Larry Starr]

18 hours ago, TPApril said:

Less than 5 employees.  Yes, context is always helpful :).

We don't qualify; we have 8 plus a second remote actuary.

[TPApril]

I guess I should phrase my question differently - a small tpa firm with one main owner and the rest administrators/actuaries/etc.

[Peter Gulia]

A BenefitsLink discussion about what TPAs now are doing suggests some key points for a business-continuity plan.

 

https://benefitslink.com/boards/index.php?/topic/65755-are-tpa-firms-essential/&tab=comments#comment-302161

[Lois Baker]

Possibly helpful article here: https://www.wagnerlawgroup.com/resources/investment/pandemic-and-broker-dealer/recordkeepers-and-advisors-chances-are-your-business-continuity-plan-did-not-fully-address-this

[Retired, but still reading]

Hi TPApril - 

Am not sure what concerns you had regarding business continuity - there's a whole spectrum - from office burns down (disaster recovery) to owner/practice leader dies/becomes disabled (succession - hopefully with less drama than the HBO series).  As a business owner, this is something is part of your SWOT (strengths, weaknesses, opportunities and threats) analysis - a fundamental element of business planning. 

Prior to selling our TPA shop and retiring, we were in pretty good shape for disaster recovery, but succession was a big concern for my wife (also my partner in the business) and I - especially the event of my death or disability, since I was the face/front-person and practice leader.   Fortunately, over the years I developed friendships with a number of other TPA firm owners and prior to our sale, we had conversations with them about helping out in the event of my death/disability.  Not really a buy/sell, but more of a bridging assist until the business got sold or liquidated.

Fortunately, we never had to call on our friends, but we laid the groundwork and also provided our attorney with detailed information about our operation and how to wind it down/sell it.  That way the attorney & our CPA could oversee things and would be aware of the friends who'd agreed to help out.  I'd be willing to share the information layout with you - just provide me with your email address.

If  your concern is more along the lines of disaster recovery, you might want to talk with some of the TPA's from New Orleans who survived the disruption of Hurricane Katrina.  As for the coronavirus mess we're in now - this is totally new ground for everybody and you'll be coping and innovating as you go - on both the operational and financial fronts.

As an owner, business continuity (any flavor) is one of those things that should keep you up at night - always best to have a plan in place!

Good luck!

Peter

 

[leevena]

My guess would be that her clients want to know what plans are in place should continuity become an issue.  The client is asking what is in place should continuity become an issue so that their plans continue to operate.