As an insurance professional with more than 38 years of experience who has been on the ground many times when catastrophes strike, I've seen first hand how devastating natural disasters can be for both individuals and businesses.

While there hasn't been a major hurricane in years, some of America's small-business owners may be feeling overconfident — even as we head into the spring storm season.

An online survey by Nationwide reveals that small-business owners are split when it comes to whether El Nino has increased (37%) or decreased (37%) the likelihood of a natural disaster affecting their company.

We commissioned Harris Poll to conduct our second annual survey in June 2015 among 500 U.S. small-business owners who have fewer than 300 employees and at least a moderate role in employee benefit selection.

Our survey found that:

  1. Small-business owners are split on whether climate change has increased (41%) or decreased (35%) the chance of a disaster affecting their company
  2. While owners are divided on the impact of climate change and El Nino on their companies, half (51%) said some people would call them a "prepper"
  3. The vast majority still don't have a disaster plan in place (75%) or Business Interruption insurance (66 percent)

While some small-business owners have taken steps to reduce their risk, many still don't have a disaster plan or business interruption insurance. That's why we want to help them start preparing now for the unexpected.

Here are seven steps you can take to prepare your small business for a disaster:

  1. Know your risks: Determine the greatest threats to your business, the likelihood or probability for each of those threats, how severe each event could be, and the potential effect on each business function or process
  2. Understand your operations: Decide the maximum amount of time you can endure being closed after a disaster occurs by identifying your key business functions and processes, and then determine how long you can go without being able to perform them
  3. Reach your employees: Your employees are your most valuable asset, so make sure you know how to reach them during an emergency; have your employees review and update their contact information at least every six months, and create a special emergency email account
  4. Contact your customers: Identify various ways to communicate with key customers, contacts, suppliers and vendors after a disaster, such as direct telephone calls, texts, emails, social media posts or announcements on your company website
  5. Prepare your technology: Keep a backup copy of your computers' operating systems, boot files, critical software and operations manuals; maintain an updated copy of computer and Internet login codes and passwords
  6. Evaluate your insurance: Understand your insurance policies and meet regularly with your agent or broker to make sure you understand your coverage, deductible, limits and claim filing process; consider a policy that will reimburse you for business interruptions in addition to physical losses
  7. Update your plan: For your plan to be successful when a disruption occurs, you must maintain and update it on a regular basis; keep your employees informed of any changes as this will help when they need to put the plan into action

We never know when Mother Nature may strike, so the time to start preparing is now.

Mark Anderson is associate vice president of commercial lines property technical claims at Columbus, Ohio-based Nationwide.

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