Disaster Recover Plan

PERMA

DISASTER RECOVER PLAN - FIRST FOUR WEEKS

EXECUTIVE MANAGEMENT

Executive Management will notify department heads by phone to initiate the disaster recovery plan and begin the following activities:

1.Meet with department heads

2.Begin negotiations with British American for temporary space as outlined in “Space and Equipment Needs” below

3.Authorize the rental/lease of office furniture/work stations

HUMAN RESOURCES

Human Resources information is maintained mostly on paper files with some data on the server. Payroll is administered off-site by ADP.

Critical Activities:Initiate contact with employees through phone tree.

Ensure payroll continuation

Reconstruct employee files

The Plan

The Human Resources staff and department head will be able to work from home to accomplish the immediate tasks of the first week of operation.

During the second week, a workstation, phones and other necessary equipment will be added as appropriate. At the end of four weeks, the Human Resources department will be in full operation.

CLAIMS

The majority of claims data is maintained on the server. However, there are paper files on each claim that include some medical reports, investigative reports, and some legal reports. All of this information is recoverable. The most difficult recovery will be investigative reports because of the somewhat unpredictable nature of that service.

The Plan

The manager, assistant managers, and supervisors will establish communications with outside vendors and state agencies as necessaryduring the first 24 hours of operation. A full claims team will then be in place in 2 to 7 days, or sooner as equipment allows.

The post office will be notified by the manager to divert mail to the temporary location, and a receptionist will be at the temporary location within 24 hours to sort and distribute mail and coordinate phone service.

Claims payments may have to be made manually on a temporary, short-term basis until necessary computer systems are available.

Those departments not established at the temporary location may be required to pickup mail periodically.

INFORMATION TECHNOLOGY

The Information Technology department is the key to a successful recovery. All departments are dependent on the software and hardware as well as the files and data that are on the servers. Presently, all data, software and files are backed up daily and maintained offsite. This practice should allow for a reasonable recovery in the longterm as well as access to essential files and data in the short term. In order to continue operations in the timeframes outlined in this report, certain critical assumptions must be made as outlined below.

I. Critical Assumptions

1. Space to accommodate 21 staff, 21 PCs, 5 servers, and 2 printers will be procured by another department and will be available within 24 hours. Ideally, the space will be pre-wired for 100mbit Ethernet, will provide high-speed Internet access, and will accommodate two phone lines for modems outside of the phone system. Within two weeks, there will be space to accommodate an additional 8 staff; within one month, there will be space to accommodate the full staff.

1. All departments will maintain off-site records of information they will need immediately, such as: key contact names, phone numbers, and e-mail addresses (it is recommended that critical GroupWise address books be exported regularly and taken off-site); claims awards information and anything else in Claims or Finance that may require immediate manual checks to be issued; inventories of equipment, furniture, etc. that will require immediate replacement or immediate reporting to our insurance carriers (IT will take care of computer hardware and software inventories).

According to this plan, electronic data files (Word docs., Excel files, etc.) and e-mail address books will not be able to be restored for at least two days, so anything needed sooner should be maintained off-site by each department.

1. Funds will be made available to the IT Department immediately and as needed thereafter. If we are able to use our normal vendors, they will extend us credit. However, we may need to use new vendors who will want checks or credit cards for purchases. We estimate needing $75,000 on day one, an additional $30,000 within the first two weeks, and an additional $140,000 within the first month. No additional budgeting is being done to accommodate disaster recovery, under the assumption that additional costs will be covered by our insurance.

1. IT staff will have available from offsite storage: backup tapes from the two prior workdays; backup CDs for all current operating systems, server-based software, and software applications; policies and procedures documentation; hardware and software inventories; vendor contact information; a backup, preconfigured RS/6000 with monitor; laser check stock for Claims and Finance.

II. Organizational IT Needs: IT’s priorities will be to restore the functions listed below, for the staff listed, in the timeframes indicated.

The Plan

III. Recovery Actions for Week 1

IV. Recovery actions for week 2

V. Recovery actions for week 3

**This is the minimum number needed for this week if not already ordered.

VI. Recovery actions for week 4 and beyond

UNDERWRITING

The Underwriting department’s critical issues primarily revolve around member underwriting files and executing policy renewals and new policies. Much of the data relative to these two issues is contained in paper files. Plans are in the works to convert to electronic files with a target date of March of 2004. Most critical data is backed up electronically. The most critical activity is policy issuance.

The Plan

Critical paper files will be stored in fire-resistive cabinets to be purchased in FY-2006 and shared with other departments as necessary.

The department head will work from home during the first week to accomplish immediate tasks. During the first week, paper files will be recovered and delivered to the temporary space. As necessary, underwriting staff will begin operations as space and equipment become available at the new location. The target for full operation at the temporary facility will be one month.

FINANCE

All the finance data and information needed to operate is on the server.

The Plan

The department head will work from home to continue critical financial operations, including banking and the administration of operating expenses. The department head and staff will coordinate with Membership Services to ensure the establishment of basic phone service and fax/copy services at the temporary space. Fax and copy machines are readily available locally.

COMMUNICATIONS

The role of Communications will be to contact members as necessary and as directed by management about the status of the situation. All of the information needed to perform this activity is available on the server.

The Plan

The Communications person will work from home and coordinate with Membership Services to establish member communications concerning PERMA’s ongoing operations. Establishment at the new location will be as space and equipment become available.

LOSS CONTROL

The Loss Control Department operates primarily from remote locations. Service interruption to members will be minimal. The only critical service to members is providing certificates of insurance in a timely manner. All member information and service data is on the server in electronic files. Videos can be reordered from vendors and be available within two weeks for distribution.

The Plan

The administrative assistant will report to the new location as space and equipment become available. The issuance of certificates of insurance will be delayed for up to two weeks. Membership Services, Communications and the Loss Control Consultants will communicate this to members. The administrative assistant and manager will begin ordering new videos. Full department services, including the video library, should be available to members within one month.

Regular loss control consulting service should not be significantly interrupted.

MEMBERSHIP SERVICES/MARKETING

Membership Services will be contacting members and answering questions. Their major role will be maintaining service continuity and customer confidence in PERMA.

The Plan

Initially, the Membership Services/Marketing staff will be able to work from their homes to begin contacting the membership by telephone. Within 48 hours, the department manager will begin operations at the temporary location and, within two weeks, the operation should be fully operational at the new location. The Marketing staff will work from home during the first week to accomplish immediate tasks and continue marketing operations. Since the account executive works primarily outside the office, no immediate action would be necessary.

SPACE AND EQUIPMENT NEEDS

Our space needs during the first 24 hours will be approximately 3200 square feet to accommodate about 21 staff. The space needs to be appropriately equipped to accommodate personal computers, high speed cable and phones. British American has indicated that in the short term they could provide the necessary, properly equipped space either in this park or one of their other locations at any time.

We have a well established relationship with Standard Commercial Interiors and they would be able to quickly supply us with our furniture. However, for our long-term furniture needs, we should consider ordering our full replacement furniture immediately since it could take four months or longer to receive delivery.

We will immediately need to search for more space to accommodate our full operating staff. British American indicated that, given their present state of constant construction of new office space, we could occupy 18,000 square feet (our present occupancy) of space within 8-12 weeks. If we plan on rebuilding, we would have to plan on occupying the space for at least a year to allow time for rebuilding.

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