Millions of small and medium sized enterprises (SMEs) in the UK do not have adequate contingency planning to allow them to continue to operate in a disaster, say insurers.
Government figures suggest that almost 20 per cent of businesses suffer a major disruption to trading every year, said the British Insurance Brokers Association (Biba).
"Our research reveals an incredibly worrying trend among the essential small business sector in the UK," said Eric Galbraith of Biba.
"Too many businesses are putting themselves and their employees' futures at risk by failing put in place proper continuity plans should the unexpected happen."
Government figures show that 80 per cent of businesses hit by major disruption close down within 18 months and 90 per cent close down within two years, claimed Biba.
"Every business needs to be properly prepared for a worst-case scenario," said Mr Galbraith. "Small businesses are vital to the UK economy and we simply cannot afford for them to be complacent."
