This might be a good time to remind your small business clients of the benefits of business interruption insurance as the threat of El Nino and other disasters triggered by climate change continues to rise.
A new online survey of 500 US small business owners conducted by
Nationwide revealed that 66 per cent still lack business interruption insurance and 75 per cent also don’t have a disaster plan in place.
“Some of America’s small business owners may be feeling overconfident, even as we head into the spring storm season,” said Mark Berven, Nationwide president and COO, “There hasn’t been a major US disaster in years, so there may be a sense of complacency.”
The survey found that small business owners with fewer than 300 employees and at least a moderate role in employee benefit selection, are split on whether climate change has increased or decreased the chance of a disaster affecting their company.
While small business owners are divided on the impact of climate change and El Nino on their company, 51 per cent said some people would call them a “prepper.”
“The good news is, many small business owners have taken steps to prepare for a potential disaster,” Berven said.
“But most haven’t done enough. Unfortunately, many still don’t have a disaster plan or even business interruption insurance, so we want to help them prepare for whatever Mother Nature – or El Nino – brings our way.”
According to the survey results, 62 per cent of small business owners said having a disaster plan is important. Also, 52 per cent said it would take more than three months for their business to recover from a disaster.
