A national survey released by the U.S. Chamber of Commerce Foundation and Verizon has found that while 94% of small and midsize businesses believe they could recover from a disaster, only 31% have a formal disaster-recovery plan in place. The survey of 2,005 U.S. small and midsize business owners and decision-makers was conducted in March 2026.
The findings underscore a critical preparedness gap that could leave many businesses vulnerable to severe storms, fires, flooding, equipment damage, and other disruptions. According to Inter Insurance Agency, the gap raises an important question for business owners: What would actually happen if the business could not operate tomorrow?
"A business owner may know that the building and equipment are insured, but that's only part of the conversation," said Tim Derham of Inter Insurance Agency. "You also have to think about what happens to the business while you're recovering. Can you operate? Can you serve customers? How long could you withstand an interruption?"
Insurance coverage can help businesses manage certain financial consequences of covered events. Commercial property insurance, for example, may provide protection for covered physical losses, while business interruption coverage may help address certain lost income and continuing expenses when operations are suspended as the result of a covered loss. However, the specific protection available varies significantly by policy, cause of loss, and individual circumstances, making periodic insurance reviews particularly important.
A separate 2026 survey of 1,000 U.S. business owners by Gallagher found that 94% were worried their business insurance might not cover a particular event or loss. The same survey found 53% identified flooding among their leading weather-related concerns, while only 30% reported having flood insurance. This disconnect between concern and coverage further illustrates the need for business owners to evaluate their risk management strategies.
Inter Insurance Agency encourages business owners to consider insurance as one component of a broader continuity strategy. Businesses can identify their most critical operations, maintain backups of important records, establish emergency communication procedures, and determine how essential work could continue if a primary location became temporarily unavailable. Business owners should also review their insurance as their companies grow, acquire new property or equipment, expand locations, or otherwise change their operations.
"Recovery is much easier to think through before you need it," Derham said. "A conversation about what could interrupt your business today can expose gaps that weren't there when your policies were originally purchased."
The implications for small businesses are significant. Without a formal recovery plan, many may struggle to resume operations quickly after a disaster, leading to lost revenue, customer attrition, and potential closure. The survey results suggest that while confidence is high, it may be misplaced without adequate preparation. For the broader economy, the resilience of small businesses is crucial, as they account for a substantial portion of employment and economic activity. Ensuring they are prepared for disruptions can help stabilize local economies and communities.
Inter Insurance Agency provides insurance solutions designed to help businesses and individuals manage risk and protect the assets they depend on. The agency works with clients to identify their insurance needs and develop coverage strategies appropriate for their operations and exposures.
