Small Businesses Need to Improve Protection

According to Scottish Provident, two thirds of small businesses believe the death of a key employee would have a severe impact on their business, yet suprisingly few have any key employee insurance.

Scottish Provident's research shows that 65% of small businesses fear a key employee dying, but only 18% have cover in place.

And over half (57%) also believe that their business would be significantly affected if a key employee was unable to work for more than six months due to a serious illness.

This gulf between acknowledged need and actual cover is even more surprising, given that nearly half (48%) predict that a key employee will suffer an illness over which they will be off work for at least six months in the future.

Jerry Bayman, national corporate sales manager at Scottish Provident, believes precious few small businesses seem to be acting to safeguard their company in the eventuality of a key employee's death or illness.

"The statistics are frightening," he says.

"In a business with four key male employees, there is a 29% chance one will die before retirement and a 68% chance that one will have a critical illness.

"However, worryingly, over half (52%) say they don't know what the probability is that one of their key employees will suffer an illness meaning they will be off work for six months or more.

"Our research shows that small business owners need to improve their knowledge of how to protect their business and their employees, in case illness or death should occur," he adds.

To speak to a business protection specialist call 0845 003 0065