Research from the insurer, Scottish Widows states 2.6 million sole traders in the UK are leaving their businesses vulnerable by not protecting the owner/key person should the worst happen. With small firms contributing over 50% of the UK’s turnover, doing all that is possible to ensure survival in the current climate and protecting their most vital assets is of highest importance.
It is a very interesting topic, whether its lack of information and knowledge or just at the bottom of the bottomless to do list most sole traders face over four in five sole traders do not have key person insurance to protect against the drop in profit that could occur as a result of or to cover the cost of filling the boots fo a key person. With this, it is also the case that sole traders tend to be reliant on one or two people to run the business, four in five of these soletraders believe their business has at least one person whose loss through death, critical illness or serious accident would severely impact the profitability and survival of the business.
Scottish Widows comments, “Thinking about personal health may be the furthest thought from a small business owners mind but it is a vital consideration to protect the future of any business. Sole traders are the engine of the UK economy but are often reliant on one or two key people to keep themselves afloat. Our research highlights that without suitable protection in place; a serious illness, disability or death could be the last straw for these vital grass root businesses. It has never been more important for small businesses to plan ahead to protect themselves from unforeseen circumstances.”
It is always the last thought on an entrepreneurs mind with so much else to be concentrating on but protection is so important given the lack of a safety net. As a sole trader there are so many ways to financially protect oneself but how on earth are you going to be able to recognise the right products for your needs. Is it a critical illness policy or income protection insurance, or what about some life insurance? There are plenty of products designed specifically for the self-employed, some providing additional services to help notify your clients and suppliers if you are unable to work due to illness injury. Whatever your need there is a good chance there is a self employed product available.
As insurance brokers dealing with insurance day in and day out we are in a great position to help understand your needs and find you the right policy at the best price.
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