A new campaign is urging businesses to make sure they have the right plans in place in case they are struck by disaster.
The Association of British Insurers (ABI) joined forces with the government to launch the campaign, which aims to raise the level of contingency planning among the UK's 4.3m small businesses.
The group said many firms could be in danger of going out of business because they haven't planned for the unexpected. They added that seven in 10 firms would go out of business in the first year if a major disaster, such as a flood or a fire, struck, with more than two thirds admitting to having no contingency plans to deal with an emergency.
Pat McFadden, minister of state for the department of business, said small businesses are vital to the nation's economy.
"The millions of people who launch, lead and work for small businesses up and down the country create vital jobs, provide essential services and generate significant wealth for the country," he said.
Stephen Hadrill, director general for the ABI, added that small to medium-sized businesses were particularly vulnerable to unexpected events which could bring them down.
"Following last summer's floods, insurers dealt with over 27,000 claims from flooded firms and paid out £1bn.
"During that time it became clear that many firms had inadequate or no plans in place to help them survive a major incident.
"I urge all firms to plan for the unexpected – doing so will make the difference between survival and going under, should the worst happen," he said.
