Research by Legal and General has revealed some startling statistics regarding UK family businesses. The study showed that less than half have a succession plan in place, to protect them against the impact of critical illness or death.
The provider found that only 42% of the 800 small to medium businesses surveyed had any type of long term plan. Family run businesses in particular were found to be at most risk, with 48% of those asked admitting the business owner’s death posed a high risk to the business.
A key person such as a business owner is an integral part of a business. 57% of those asked admitted they would likely cease trading within a year of the owner’s death, with a quarter shutting down immediately.
Business owners left open to risk are being encouraged to speak to their financial adviser, to find the most suitable form of cover to protect against the loss of a key person.
You must be logged in to post a comment.