Hurricanes Florence, Isaac and Olivia currently threaten several areas of the U.S., but most small businesses don’t have a plan for if the storms affect them. A majority (68 percent) of small-business owners don’t have a written disaster recovery plan — even though about half (49 percent) said it would take their business at least three months to recover from a natural disaster, according to Nationwide’s Small Business Indicator.
The survey revealed critical gaps in disaster preparedness for small businesses:
- 71 percent of small-business owners don’t have business interruption insurance, which can be vital to survival since an estimated 25 percent of businesses never reopen following a major disaster
- 21 percent of small-business owners without a written disaster plan said they don’t have one because it’s not a high priority for them
- 22 percent of small-business owners have already been impacted by a natural disaster
While most small-business owners don’t have a formal plan, many have taken various steps to prepare for a natural disaster. The majority reported that they can work remotely in case of a natural disaster (82 percent), have duplicated and stored their company’s vital records off site (75 percent) and have access to alternative suppliers (78 percent).