On the first official day of hurricane season, which runs through November, a Travelers survey suggests the majority of small businesses are unprepared for business interruptions stemming from storms or other disasters.
The Hartford-based company queried attendees at last month”™s U.S. Chamber of Commerce Small Business Summit on their readiness.
Just over half of small businesses polled said they do not have a written business continuity plan, and 57 percent lacked confidence their insurance will cover financial losses.
“While their larger counterparts may have the capital to self insure and cover gaps, a smaller enterprise without the same resources may be forced into bankruptcy,” said Marc Schmittlein, CEO of Travelers”™ small commercial accounts business. “This has implications for not only small business owners, but also for their communities and our economy at large.”
Travelers recommends that small businesses:
Ӣ create a business continuity plan and establish an emergency file;
Ӣ develop a hurricane emergency plan;
Ӣ keep a backup generator and batteries on hand, and back up critical data and computer records off-site; and
Ӣ review insurance policies to ensure coverage for potential hurricane losses like wind, flood and interruption.
