NU Online News Service, Nov. 11, 3:24 p.m.EST

While a majority of large businesses have contingency plans fora pandemic or other catastrophe in place, many small to mediumcompanies do not, which can result in their demise in the wake of adisaster, according to experts.

"Small businesses that don't have a plan in place generallydon't survive after a disaster, whether it's a flood or a tornado.We see that anywhere from 40-60 percent of those that are hit likethat simply don't come back to business," said David Paulison,former executive director of the Federal Emergency ManagementAgency (FEMA) in a phone conference with NU Online.

He added, "The truth is that it's not that difficult to put aplan together to survive any type of catastrophic event--a disasteror something like H1N1."

Mr. Paulison said FEMA and Homeland Security Web sites havedetailed steps for putting a plan together as well as practicingthe plan to make sure it works.

He recommended sites such as:

o www.ready.gov

o www.flu.gov

"These are easy to use and free," he said.

When he was at Homeland Security, he noted, their contingencyplan was practiced with employees working from remote sites to makesure they could all communicate and do their jobs.

Bob Boyd, chief executive officer of Agility Recovery Solutionsconsulting firm, who also took part in the phone conference, saidit is no surprise that smaller businesses trail larger ones in thisrespect. "Large enterprise companies have a program and maybeSarbanes-Oxley requirements and a dedicated staff," he said.

Smaller companies, he noted, are "just now beginning to figureout how to get their arms around it, and they're potentially moresusceptible to events than a large enterprise."

Mr. Boyd, by example, mentioned that a large bank with a branchclosed can have customers visit another branch, whereas a smallbusiness wouldn't have the same options.

According to the 2009 Disaster Recovery & BusinessContinuity Survey from Charlotte, N.C.-based Agility:

o Ninety percent of smaller companies (less than 100 employees)surveyed spend less than one day per month preparing andmaintaining their continuity plans.

o One in five (22 percent) spend no time maintaining theirplans.

o Comparatively, 20 percent of larger companies (more than 100employees) spend over 10 days per month on their continuityplans.

In exercising a plan, Mr. Boyd said, assumptions that have beenmade sometimes are not valid. "It's better to find that out."

Dr. William Lang, former associate chief medical officer at theDept. of Homeland Security, said during the conference that inpreparing for the H1N1 virus, larger organizations can begin withtheir existing disaster plan and apply it to the H1N1 risks. Smallto medium size business, however, may not have an all-hazards planin place as a starting point.

He added that smaller businesses often don't have a risk manageremployed to implement a plan. "The risk manager is the owner of thebusiness," he said. "And how much time is [the owner] going tospend on risk management versus operating his business?"

Mr. Boyd pointed out that smaller businesses--that haven't beenmandated by a regulator to put a plan in place--may perceive thatimplementing an all-hazards plan is too time-consuming andcostly.

Dr. Lang said a roadblock to putting a pandemic plan in place iswhat he called "pandemic fatigue," or apathy, caused by theperception that the H1N1 virus may be a "non-event."

While the likelihood is that we may be facing a "bad flu season"rather than a full-blown pandemic, some businesses may be hit withhigh absenteeism rates, he observed.

He explained that the effect to businesses is different thanother disasters because it affects people rather than the facility,meaning that companies need to protect their employees.

Situations that need to be planned for include:

o Employees who may have used up their sick leave.

o Contractors who may come to work sick.

o Parents who might have to stay home to care for a sick childand need to be covered for in the office.

"A pandemic doesn't have geographic lines, unlike a hurricane orearthquake," he said.

He said insurance agents and brokers can play a big part inhelping smaller businesses get up to speed in this area. "This is aperfect opportunity for agents and brokers," he said, adding thatsome insurers give discounts for recovery plans.