Sole traders lack “key person” insurance
The Scottish Widows Business Protection Report has discovered that around 2.6m sole traders in the UK are leaving themselves vulnerable to the loss of one or two instrumental people.
Small firms contribute about half of the country’s turnover, but many are failing to protect the key person/owner involved.
More than four in five have one or two key people whose loss would dramatically constrain the sole trader’s profitability and jeopardise the future of the business.
Despite this 81% of sole traders are without “key person” insurance to help protect against the loss in profitability if a key person were lost.
Protection Market Director Clive Allison has stated that such a matter is a vital consideration for a small business, however unpalatable a thought it might be.
Allison added that the prolonged recession and probably gradual recovery make it more important than ever for sole traders to protect themselves from potential harm.
Category: Insurance News
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