Businesses more inclined to protect office equipment than their own staff

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.’

Life insurance news: 5 October 2011