A recent Bermuda Insurance Institute survey revealed that of the 60 firms that have so far responded to its questionnaire, more than half lack any kind of overall plan to deal with a disaster.

This announcement comes two days after local banker Mr. Glenn Frazer addressed the Hamilton Rotary Club about the need for Bermudian companies to have standardised policies and guidelines to cope successfully with crises.

As a consequence of the BII survey findings, a seminar has been planned for November 1 to underscore the need for comprehensive contingency planning.

Mr. Paul Rowlerson, of Johnson and Higgins and Mr. Hugh O'Neil of the BF&M Insurance group will analyse the survey which was started two weeks ago.

A series of questions were faxed to the 150 BII members and included questions about their state of disaster preparedness.

"We wanted to know whether they had a plan,'' Rowlerson said. "And whether it had been tested for such contingencies as an island-wide power failure.

"We also asked whether they had a plan for overseas backup in the event the entire Island was shut down.'' Mr. Rowlerson said he was impressed with the honesty respondents have displayed.

However, he said he expected the number of unprepared companies to be substantially higher once all the surveys were returned, which underscored the seminar's importance.

Mr. Rowlerson and Mr. O'Neil are members of the BII's Information and Technology committee.

The morning seminar, which will examine such issues as costs of business failures, director's responsibilities, and audit considerations, is aimed at all interested companies.

"Contingency planning refers to a broad range of issues,'' Mr. Rowlerson explained. "This includes the broader legal, physical and public relations elements of any disaster relief strategy.

"Disaster recovery alone is too narrow, because that refers only to physical damage.

"However contingency planning would deal with the legal matters involved when a disaster strikes and a company is unable to service its customers and honour its contract.

"That could open them up to lawsuits from their customers since their contracts have been broken, as a consequence these customers will then move on to another supplier.'' Mr. Rowlerson said effective public relations were a fundamental component of any contingency plan because it was in every companies' best interest not to panic its customers.

Meanwhile, Mr. Keith Gibson, director of strategic services for accounting firm Peat Marwick, will deliver the keynote address entitled "The Cost of Business failure''.

"I think these issues will be high in the minds of executives given the recent weather we have had,'' Rowlerson continued.

"But more importantly, we want to impress on company executives that these things happen locally as well as internationally, and they all need a holistic perspective.

"That is exactly what contingency planning is all about.''