Small and medium-sized businesses who fail to plan for the worst case scenario are risking their futures, according to a Shropshire insurance broker.

Dave Williams, of Henshalls Insurance Brokers in Newport and Shrewsbury, said more and more businesses were avoiding having to think about what actions they would take if the worst should happen.

"Figures show that businesses are just not taking the time to prepare disaster recovery and business continuity plans.

"In a survey by AVIVA, half the SME owners interviewed said they had no such plans in place and even more worryingly, another 16 per cent said they didn't think they needed one. This is a really short-sighted approach that could actually put the future of their entire business at risk."

Dave said the consequences of failing to prepare for difficulties that may crop up were clear, with statistics showing the stark reality of the situation.

"A study by the Federation of Small Businesses shows that 80 per cent of small firms affected by a major incident closed within 18 months, and 90 per cent of businesses that lose data from a disaster are forced to shut within two years.

"This should be a real wake-up call for small and medium-sized businesses, and the warning they need to make sure they are better prepared."

Dave said business owners must take every step possible to protect their years of hard work and commitment. "Although it's not a formal insurance policy, a business continuity plan is the best way to protect your company and your staff and to ensure you can continue trading, no matter what happens.

"A disaster or crisis can strike your business at any time, whether it's a fire, damage to stock, illness of key staff, or an IT system failure - and a business continuity plan may be the difference between your business recovering or failing altogether."

Dave said the plan should ideally cover all aspects of the business, including the key functions you will need to get up and running as quickly as possible, and the resources you'll need.

"You'll also need to include contact details of who you need to notify, and of service providers such as glaziers, plumbers, electricians and IT specialists, and keep hard copies of your plan at your home and with your bank."