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Legal & General finds no change to the business protection gap

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New research conducted by Legal & General in conjunction with the Institute of Directors, shows that the business protection gap remains the same.


Research has been conducted to understand the security of assets, shares and cash flow of businesses. It shows that overall businesses are more optimistic about predicting growth and profits in the year ahead and corporate debt has reduced.  However the size of the business protection gap remains the same.


533 responses were received to a questionnaire sent out in September 2010. Key findings:


  • A third of businesses have corporate debt and those companies with 50 or more employees were more likely to have built up debt

  • More than 43% have no protection for their corporate debt

  • Life assurance was not recommended for 58% of those who had a bank loan or overdraft.


Over a third of respondents have not taken out cover to protect themselves or their business in the event of the death or serious illness of a key director or business owner despite recognising the threat to their business surviving if it happened.


Clare Harrop of Legal & General says, "Too many businesses still have no cover in place for unexpected events and this poses a huge potential risk for their success and survival."

Life insurance news: 30 November 2010