Recent surveys have shown that large numbers of small and medium sized businesses are risking their security by failing to take out adequate insurance.
With global warming increasing the risk of natural disasters, and the ever present threat of fire or even terrorism, insurance is one area that businesses can't afford to skimp in.
The survey, conducted by Populus, indicated that 50 per cent of businesses did not have plans to deal with flooding, and only slightly more had plans to deal with fire.
Half of all businesses questioned thought they could continue with business after such an event within one day.
David Croucher, home affairs chairman at The Federation of Small Business commented: "It is not just the initial impact that does the damage, it is the period elapsed until the business gets back up and running again."
He continued: "A long period out of action can spell the end for many small businesses."
The report advises all businesses to take out a Business Continuity Plan to deal with the effects of potentially disastrous scenarios.
However, 64 per cent of small businesses are concerned about the growing cost of insurance, according to figures from Wells Fargo/Gallup Small Business Index.
