Small, midsize businesses need continuity plan.

Hurricanes. Tornados. Avian flu. Large risks threaten businesses of all sizes, but small and midsize businesses are often too busy with day-to-day operations to make a business continuity plan, said Michael Mayers, senior vice president of risk management for Cbiz.

"The real problem is that every business recognizes that they are prone or at least subject to all of these kinds of things. There is a bit of denial--this won't happen to me--but the real issue is they think that they don't have the critical mass to deal with it," Mayers said.

For the hazards such as tornados, hurricanes and floods, "You can buy insurance for those kinds of things, but that doesn't take the place of having a plan," Mayers said.

For instance, the morning after a fire destroys your business "is not the time to say 'now what do we do?'" Mayers said.

And business interruption insurance, which usually is tied to some sort of property damage, isn't likely to cover an outbreak of avian flu.

Three major areas that small and medium-sized businesses often neglect until it's too late are:

Technology: ensuring reliability of a company's network, communications and the ability to telecommute.

Insurance: making sure coverage is appropriately integrated with a business continuity plan, and "key persons" are covered.

Human resources: having an effective inter-office communication plan set up in advance.

"The importance of ensuring the uninterrupted supply of business and services to a company's clientele should be priority number one," Mayers said. "From risk financing, to data storage and redundancy, to employee communications, businesses are often too late to the game when it calls for a business continuation plan," said Mayers.

It can be a daunting task, but Mayers said every business can and should spend the time and energy to make such a plan.

"How do you eat an elephant? One bite at a time," Mayers said.

Loss/Risk Management Notes is compiled by Senior Associate Editor Meg Green.