3rd January 2018
Most small businesses are failing to insure their key employees, according to research from Royal London.
A study of 732 SME owners revealed that only 26% have insurance covering the key people in their business.
Key person cover could help SMEs deal with the impact of losing the most valuable people in their business by providing a lump sum payment if a key person dies or is diagnosed with critical illness.
According to the research, 3 in 10 SMEs have experienced the loss of a key employee for 3 months or more due to a serious illness.
However, of the decision-makers who have heard of this type of insurance, 51% do not think the policy is important.
Ian Smart, product architect at Royal London, said:
"People are the most valuable asset of any business, but SMEs are more likely to insure their premises and stock than their key people.
"Senior decision-makers at SMEs need to find out more about business protection insurance from their financial adviser to help insure the future of their businesses."
Talk to us about insuring your business.