Vitality warns financial security of small business owners at risk with so many lacking business protection insurance17 June 2021 - New data from Vitality has found two thirds (67%) of SME business owners, say their business is their main source of household income yet, a third (34%) do not have any form of business protection in place, posing a threat to their financial security.
Two fifths (41%) of business owners admitted they had never thought about what would happen if they or a significant person were too ill to work, died or suffered a long term serious illness while one in five (20%) believed family members would be able to step in and manage the business overlooking the emotional and financial strain this would likely cause.
Karl Hewstone, Director at Vitality, said: “Although it isn’t always the easiest conversation to have, supporting clients to recognise the potential risks and implications of having a serious illness - or worse- is crucial; especially as so many rely on their business income for their financial security.
“While families often play a key role in supporting new businesses, it’s less likely that this will be possible as the business grows and important that owners consider the reality of how they would cope in the event they were unable to work due to illness. Financial security and peace of mind are key to the value that business protection can provide.”
While business owners may have personal protection policies in place, this will not protect their business if another unprotected owner or key employee were unable to work. Vitality’s Risk Reality Calculator calculates that for two people involved in a business, aged 40, and non-smokers, there’s a 16% risk that one would suffer a serious illness. Business Protection will ensure the business - and all it provides for the owners and their families, plus the jobs of those employed by the business – is protected against serious illness or the death of a business owner or key employee.
Advisers can find out more about Vitality’s Business Protection offering and how to help their clients protect their businesses on the Vitality website: https://adviser.vitality.co.uk/life-insurance/business/.
Notes to editors
All Vitality data from research carried out with 501 business owners between 5th-9th February 2021 by Opinium on behalf of Vitality.
Vitality’s Risk Reality Calculator can be found here: www.vitalityriskcalculator.co.uk
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