Research from Scottish Widows says that 2.6 million sole traders in the UK are leaving their businesses vulnerable by not protecting the owner/key person should the worst happen. With small firms contributing more than 50% of the UK's turnover, taking every step possible to ensure survival in the current environment and to protect their businesses going forward is vital.
With sole traders reliant on one or two people to run the business, four in five believe that their business has at least one person whose loss through death, critical illness or serious accident would severely impact the profitability and survival of the business. But over four in five sole traders do not have key person insurance to protect against the drop in profit that could occur as a result or to cover the cost of filling a vacancy.
Clive Allison at Scottish Widows comments, "Thinking about personal health may be the furthest thought from a small business owners mind but it is a vital consideration to protect the future of any business. Sole traders are the engine of the UK economy but are often reliant on one or two key people to keep themselves afloat. Our research highlights that without suitable protection in place; a serious illness, disability or death could be the last straw for these vital grass root businesses. It has never been more important for small businesses to plan ahead to protect themselves from unforeseen circumstances."