Half of SMEs would close if they lost a key member of staff

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Over half of small to medium-sized enterprises (SMEs) would be unable to continue if they lost one or more key people to things like long-term incapacity, death or illness, according to a new study.

However, the research by Scottish Widows has also revealed that just one in six SMEs have insurance in place to protect them should the worst-case scenario actually happen.

With small teams predominant throughout the SME demographic, such an event cost 44 per cent of businesses a loss in revenue, while 55 per cent suffered a hit to their pool of expertise.

Scottish Widows’ protection specialist Katya Maclean said: “While business protection insurance for staff is rarely a priority, its absence can be the biggest single risk to the profitability and even the very existence of a business.”

Just three per cent of respondents to the survey highlighted insuring against the death of a person as a key priority.

Posted by the Secret Businessman