Businesses 'unprepared for disaster'

News Article - 22 May 2012
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Half of all small businesses in the UK have no provisions to ensure their companies do not collapse in the wake of a disaster, research indicates.

A study by Bank of Scotland Business Banking found that 50 per cent of firms have no plans outlined to help them recover from disasters such as flooding, fire or terrorism.

"When small businesses do suffer a major incident the impact can be devastating," Kevin Gillett, head of Bank of Scotland Business Banking, said.

"It is alarming to see how little thought and preparation is being put into disaster planning by many companies."

However, the research also discovered that the majority of small businesses are aware of the need to put into place some sort of measures to ensure their firm survives following a catastrophe.

Of those questioned, 37 per cent said they did have a plan to protect their business despite more than half of respondents saying they knew a disaster would put their firm out of business.

According to the American Red Cross, companies should consult with their insurance agents about steps which could be taken to prevent a disaster and think about taking out business continuity insurance.

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