It would take at least three months for half of U.S. small businesses to recover from a natural disaster. So why is it two out of three small business owners don’t have a written disaster recovery plan?
According to the most recent Small Business Indicator from Nationwide, which polled 502 U.S. small business owners with fewer than 300 employees, many respondents have critical gaps in their disaster preparedness. 68% of owners said they don’t have a written disaster recovery plan – even though an estimated 25% of businesses never reopen following a major disaster.
Among those without a written plan, 21% responded that they don’t have one because “it’s not a high priority” for them.
That’s not to say they haven’t taken any steps to prepare:
- 82% said they can work remotely in the event of a natural disaster
- 75% have duplicated and stored vital records off-site, and
- 78% have access to alternative suppliers.
That’s not a bad start, but it may not be enough. Within the survey, the insurance company points out that a 26% increase in the severity of the commercial catastrophe claims it has seen over the past three years, compared to 2007-2013.