Nearly all small and midsize business owners believe they could recover from a disaster, but fewer than a third have a formal plan to do so, according to a national survey released by the U.S. Chamber of Commerce Foundation and Verizon. The survey of 2,005 U.S. small and midsize business owners and decision-makers, conducted in March 2026, found that 94% were confident in their ability to bounce back from a disaster, while only 31% reported having a formal disaster-recovery plan in place.
The preparedness gap raises critical questions for business owners about operational continuity, not just physical assets. “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?”
Disasters and major disruptions can include severe storms, fires, flooding, equipment damage, and other events that temporarily halt normal operations. Insurance coverage can help manage certain financial consequences of covered events. Commercial property insurance may protect against covered physical losses, while business interruption coverage may help address certain lost income and continuing expenses when operations are suspended due to 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.
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 findings underscore a significant vulnerability for small businesses, which often operate with limited resources and could face severe consequences from even a short disruption. While confidence remains high, the lack of formal planning and adequate coverage for specific risks like flooding suggests many businesses may be underestimating their exposure. Regular insurance reviews and continuity planning can help close this gap, ensuring that businesses are better prepared to withstand and recover from unexpected events.
