Businesses are failing to protect against the loss of one of their key assets – their employees.
The latest Scottish Widows Business Protection Report has revealed that 77 per cent of businesses that were questioned could identify at least one employee whose loss through death or critical illness would have serious implications for the business’s survival, yet just 13 per cent of those have adequate insurance.
In fact, the report, which involved 500 UK business decision makers, found that they were more likely to insure office equipment against breakdown than a key individual. More than a quarter had insurance for office equipment in place, while just six per cent have financial protection against the death of a key employee – concerning when 60 per cent of businesses admit that they would definitely not survive the loss of a key person.
According to the research, despite the high volume of businesses that are aware of how detrimental the loss of a key employee could be, just 29 per cent have sought professional advice on business protection.
Iain McGowan, Head of Savings and Protection at Scottish Widows commented: “There are many reasons for business owners failing to take action. In some cases, this represents a failure to plan properly or a lack of understanding of the benefits of business protection. Perhaps even a refusal to contemplate the death or critical illness of a colleague. However the potential consequences to the business, demonstrate the importance of protecting arguably the one thing that can ensure its future survival; its employees.”
Please contact us if you would like to discuss business protection.