Mind The Gap – The importance of business protection to your company’s future
Recent research by one of the UK’s leading insurers shows that the business protection ‘gap’ is now approximately £1.35 trillion. Business protection provides invaluable financial help in the unfortunate event of a key person’s death, terminal or critical illness, or permanent disability and with economic pressures high many businesses are simply holding un-indemnified risk to save cash. Could your business cover the costs if the unthinkable were to happen?
Key findings of this research include:
– Almost 3 out of 4 business owners aged under 40 do not have any life insurance cover
– 51% of businesses had not protected their corporate debt
– 40% of business owners expected their business to fold within 10 months of the death or critical illness of a key person
– 6 out of 10 businesses had no protection cover in place to cover the cost of purchasing shares should a business owner die
Times are tough and disposable funds are difficult to come by, but a lack of provision to protect a business’ shares following the death or critical illness of a business owner can seriously destabilise a company, swiftly leading to financial difficulties. Focusing simply on short term survival can compromise the future of a business.
UK business owners are slowly waking up to the need to protect their key people, but many still do not realise the importance of protecting their company’s future. If you would like to discuss protecting your business please contact Laurence Kelly on 01772 821021.