Small-business owners are overwhelmingly confident in their ability to bounce back from a disaster, but new research reveals a significant gap between confidence and preparation. A national survey released by the U.S. Chamber of Commerce Foundation and Verizon found that 94% of small and midsize businesses believe they could recover from a disaster. Yet only 31% reported having a formal disaster-recovery plan in place. The findings come from 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.
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 business owners are clear: relying on confidence alone is not enough. Without a formal plan and adequate insurance, many businesses could face severe financial strain or failure after a disaster. For the insurance industry, the findings underscore the need for greater education and tailored coverage options. As natural disasters and other disruptions become more frequent, the gap between perceived and actual preparedness could have wide-ranging consequences for local economies and employment.
