Gaps in cover expose small business bosses
A large majority of small business owners leave their companies unprotected by insurance for times when they are unable to work, according to a new report from MetLife.
The life insurer’s Adviser-Client Relationship survey reveals only 35% of respondents have taken out key person insurance, while only 30% have trauma cover for their businesses. About 27% have taken out buy/sell insurance.
Head of Retail Sales Matt Lippiatt says many business owners are leaving themselves exposed to financial hardship or business failure if they experience an interruption.
Small business makes up almost 40% of GDP, Mr Lippiatt says.
The survey also shows small business-owners have high expectations of their advisers and are not afraid to drop them if they are dissatisfied.
More than 40% have stopped using an adviser for reasons including price, poor advice, lack of contact, difficulty dealing with their adviser or a lack of value for money.
In comparison, only about 25% of private consumers have ditched an adviser.