Research from Vitality has found that 34% of SME owners do not have any form of business protection in place.
This was despite the insurer’s survey finding out that 67% of these owners relied on their business as the main source of their household income.
It also found that 41% of business owners surveyed 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.
And 20% believed family members would be able to step in and manage the business overlooking the emotional and financial strain this would likely cause.
In all, Opinium questioned 501 business owners in February on behalf of Vitality.
The insurer warned that 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.
Its risk calculator suggests that for two people involved in a business, both aged 40 and non-smokers, there was a 16% risk that one would suffer a serious illness.
Karl Hewstone, director at VitalityLife, 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 it is important 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.”
