Small Businesses Avoid Business Interruption Coverage: Nationwide Survey

August 31, 2015

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 in prepared remarks.

Nationwide said the lack of a major national disaster in several years may be leaving small business owners overconfident. The insurer said they must plan more, however, as the summer storm season commences.

Among the small business owner survey findings:

Source: Nationwide