Despite the major natural disasters that hit the U.S. in 2011, only 31 percent of business owners say they are extremely or very prepared in the event of extreme weather, according to a recent Wells Fargo/Gallup Small Business Index survey.
Of those surveyed, 46 percent say they are somewhat prepared while over half of respondents at 54 percent say they are not concerned about a disaster affecting their businesses.
The survey asked business owners about their emergency preparedness for major disasters, such as fires, tornadoes and hurricanes as well as seasonal weather events, such as snow, ice and flooding.
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"Small-business owners know what it means to face unexpected challenges and how to adapt their businesses to survive," says Doug Case, Wells Fargo small-business segment manager. "But for many small-business owners, day-to-day business concerns in an uncertain economy require their full attention, and emergency preparedness may often be set aside for another day."
In fact, the survey results indicate that business owners are more prepared for a natural disaster to hit their homes than their businesses, with only 37 percent of respondents saying they have a defined and practiced emergency plan at work, as oppose to 54 percent at home, which is true for other areas of preparedness.
For example, 52 percent of businesses have the appropriate emergency supplies, compared to 71 percent on the home front, and 64 percent of businesses know where to seek shelter, though that figure is at 79 percent for homes. A known evacuation route is in place for 68 percent of businesses and 79 percent of homes. Forty-nine percent of businesses review their evacuation plans, versus 67 percent of homes, and 73 percent of businesses have insurance policies for natural disasters while 86 percent of homes have the same coverage.
"While the majority of business owners report having insurance for a potential disaster, more than one in four does not have the protection they need," says Tom Ryan, executive vice president at Wells Fargo Insurance Inc. "Protection against unexpected emergencies is essential for long-term success."
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