Third of Canadian small businesses missing contingency plans for severe weather

More than a third of Canadian small business owners don’t have contingency plans for work stoppages from severe weather or other interruptions, according to a new poll from CIBC.

Based on a web survey of 500 small businesses (under 500 employees) conducted by Leger Marketing in February, 35% lack contingency plans, CIBC said.

In Atlantic Canada, 43% lacked business interruption plans, followed by Quebec at 41%. In Ontario, 31% didn’t have a plan, and in Manitoba and Saskatchewan, 32% reported not having one. Alberta and British Columbia had 35% and 36% of small businesses respectively lacking a plan.

Following major flooding last summer in Alberta and ice storms in Ontario last winter, some small businesses are re-evaluating their business interruption plans because of natural disasters and severe weather, CIBC noted.

In Alberta, 38% said they were rethinking their plans, and 23% in Ontario said the same, according to the poll. However, in Quebec, only 5% said they are rethinking their contingency plans, and in Atlantic Canada, only 9% reported reevaluating how they would handle a business interruption.

One in 10 small business owners have experienced a business interruption over the past year, according to the poll. Most reported severe weather as the reason for the disruption, followed by illness or personal reasons of the owner.

In terms of planning, 26% of business owners plan to use cash reserves, lines of credit or loans, or personal savings to help them get through business interruptions, and 20% plan to use credit cards or insurance, according to CIBC.