A national survey released by the U.S. Chamber of Commerce Foundation and Verizon has uncovered a striking disconnect between small-business owners' confidence in their ability to recover from a disaster and their actual level of preparation. While 94% of small and midsize businesses believe they could recover from a disaster, only 31% reported having a formal disaster-recovery plan in place. The findings are based on a survey of 2,005 U.S. small and midsize business owners and decision-makers conducted in March 2026.
Inter Insurance Agency says the preparedness gap highlights 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?"
Disasters and major disruptions can take many forms, including severe storms, fires, flooding, equipment damage and other events that temporarily prevent a company from conducting normal operations. 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. 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. These findings underscore that even among those who have coverage, there is uncertainty about whether it is adequate.
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 gap between confidence and preparedness matters because a business that cannot recover quickly may face lasting consequences, including lost customers, revenue declines and even permanent closure. For small businesses, which often operate with limited resources, the absence of a formal plan can turn a manageable disruption into an existential threat. The survey results suggest that many owners may be overestimating their readiness, potentially leaving their operations vulnerable to events that could have been mitigated with advance planning and appropriate insurance coverage.
