66% of Small Businesses Lack Business Interruption Coverage
Nearly 75 percent of small businesses say they don’t have a
disaster recovery plan in place. For companies with fewer than 50
employees, just one in five – or 18 percent – have one, according to a
new Nationwide-sponsored survey.
Those low numbers also reflect a lack of relevant insurance coverage,
with 66 percent of respondents not having business interruption
insurance.
Nationwide
commissioned the survey from Harris Interactive, which polled 500 U.S
small business owners online in June with fewer than 300 employees. Mark
Pizzi, president and chief operating officer of Nationwide Direct and
Member Solutions, said that small businesses’ lack of planning in terms
of disaster recovery is unfortunate and potentially quite costly.
“Small businesses are least likely to have disaster recovery
insurance. And yet they are the ones most affected by a disaster. That’s
why it’s essential for small businesses to have a disaster recovery
plan,” Pizzi said.
Among the small business owner survey findings:
- More than half of respondents said it would take them at least three months to recover from a disaster.
- 38 percent – more than a third – of small business owners believe it isn’t important for their businesses to have a disaster recovery plan.
- 26 percent – one in four – said that they believed there was a slim chance that a natural disaster would occur in their area.
- 37 percent said climate change and El Nino made it less likely that natural disasters would impact their business.
- 69 percent said they have an evacuation plan at home.
- For businesses without a disaster recovery plan, 34 percent said it was a low priority.
- If a disaster hit, 44 percent said they don’t have access to generators if disaster hit.
Shared Via Insurance Journal
For more information on business interruption coverage contact
info@lehnandvogt.com
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