New research from Scottish Widows says that businesses remain worryingly passive when it comes to protecting one of their key assets - their employees. This is despite over three-quarters admitting that they can identify at least one individual whose loss through death or critical illness would have a serious impact on the profitability or future survival of the business.
The research shows that the majority of businesses are still reluctant to protect themselves from the unexpected happening to a business owner or key member of staff. Just 13% of businesses who have identified the importance of a key person hold insurance that would protect the business against their loss and despite such a low take up of business protection, 60% of businesses admit that they would definitely not survive the loss of a key person.
It is more likely that businesses will insure office equipment than they are to insure a key individual whose skill sets are vital to the future survival of the business.
Iain McGowan of Scottish Widows comments:” 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.’