Travelers Shares Preparedness Tips for Small Business Owners
HARTFORD, Conn.--(BUSINESS WIRE)--
A questionnaire posed to small business owners who attended the U.S.
Chamber of Commerce Small Business Summit last week shows that the
majority are at risk in the wake of a potential disaster.
Approximately 57 percent of small business owners surveyed feel only
somewhat or not very confident that they have the appropriate insurance
coverage to protect against insurable risks that can result in
significant financial losses or cause them to go out of business.
Another 52 percent surveyed do not have a written business continuity
plan or disaster recovery document that identifies and mitigates
potential threats to a business, its employees and its customers in the
event of a natural or man-made disaster or disruption.
“Given current economic conditions and increasingly unpredictable
weather, small businesses have too much at stake to risk not having
adequate coverage. While their larger counterparts may have the capital
to self insure and cover gaps, a smaller enterprise without the same
resources may be forced into bankruptcy. This has implications for not
only small business owners, but also for their communities and our
economy at large,” said Marc Schmittlein, President and CEO of Travelers
Small Commercial Accounts. “The results demonstrate the need for small
business owners to increase awareness of the risks facing their
businesses. As one of the nation’s largest insurers of small businesses,
along with our agents, we are committed to educating and arming
entrepreneurs with tools and resources to manage risk, prevent business
interruption and help them succeed.”
At the U.S. Chamber of Commerce Summit, Travelers hosted a breakout
session, “Protecting Your Competitive Advantage and Employees,” to
outline steps for building a business continuity plan. Small business
owners can rely on the expertise of their insurance agents to help
develop a plan and access risk control resources on Travelers’ website.
Travelers recommends that small business owners take the following steps
to prepare for storm season to help prevent damage when things go wrong:
- Create a Business Continuity Plan and Establish an "Emergency File"
- Review existing plans and communicate emergency evacuation and
business interruption instructions to employees.
- Develop a Hurricane Emergency Plan - Identify how you will
prepare, respond and recover to the threat of a hurricane. Include
long-term and short-term safety requirements as well as procedures
during and after the hurricane.
- Back Up Your Business - Consider keeping a backup generator and
plenty of batteries on hand. Back up critical data and computer
records off-site so that operations can continue. Having backup
accounting documents and a record of business contents can assist in
quickly moving the claim process for business interruption coverage.
- Review Your Policies - Understand insurance policies and ensure
the business is properly covered for potential hurricane losses like
wind, flood and interruption issues.
Highlights of the key findings of the Travelers questionnaire, which was
conducted during National Small Business Week, are:
Business Continuity:
-
Only 48 percent have a written business continuity plan or some other
disaster recovery document that identifies and mitigates potential
threats to a business, its employees and its customers in the event of
a natural or man-made disaster or disruption.
Insurance Coverage:
-
57 percent are only somewhat confident, or not very confident, that
they have adequate insurance coverage to protect against insurable
risks that can result in significant financial losses or lead to going
out of business.
The Travelers questionnaire was part of a broader commitment to
advocating for small businesses. The Travelers
Institute, the company’s public policy division, continues to host a
national series of small business symposia, entitled “Small Business -
Big Opportunity,” to convene government, community, business and
economic leaders to identify common challenges and related solutions to
ensure small business success.
Methodology
The questionnaire was conducted on-site at the
U.S. Chamber of Commerce’s annual America’s Small Business Summit held
in Washington, D.C., from May 21-23, 2012, and is intended to represent
the sentiments of approximately 300 small business owner attendees who
participated in an in-person interview over three days.
About Travelers
The Travelers Companies, Inc. (NYSE: TRV) is
a leading provider of property casualty insurance for auto, home and
business. The company’s diverse business lines offer its global
customers a wide range of coverage sold primarily through independent
agents and brokers. A component of the Dow Jones Industrial Average,
Travelers has more than 30,000 employees and operations in the United
States and selected international markets. The company generated
revenues of approximately $25 billion in 2011. For more information,
visit www.travelers.com.
The Travelers Companies, Inc.
Ashley Maagero, 860-277-2954
[email protected]
Source: The Travelers Companies, Inc.