Small businesses lack insurance for key personnel
According to the Scottish Widows Business Protection Report, nearly two-thirds (63 percent) of small, family businesses in the UK have at least one key member of staff whose loss through death, critical illness or serious accident would affect the survival of the business.
Despite this, 60 percent of family businesses don’t feel the need to have any business protection insurance in place. Indeed, only six percent of all UK businesses have insurance to cover the loss of a key individual through death, with this dropping to four percent for critical illness – although 27 percent have insured their office equipment, such as the photocopier.
In addition to ensuring that the business will survive, business protection insurance proves to investors and business partners that the company can afford to, and makes the time to, insure its valuable assets. This is especially important for smaller businesses looking to grow through partnerships.
“The loss, even temporarily, of a key staff member or other interruption is always going to hit the smallest firms the hardest. It is therefore vital that small businesses get their contingency plans in place now, not when trouble strikes,” said John Walker, Chairman of the Federation of Small Businesses.
While over a third (39 percent) of small businesses do not have professional accounting and financial advisers, it is vital to seek guidance when implementing business protection insurance to ensure that this is done properly, so please contact us for more information.
