Category: Contractor Industry News

Small firms are becoming increasingly reliant on key employees, with two-thirds saying the death of such a person would have a "severe impact" on their business, according to figures from Scottish provident.

However, fewer than one in five companies have taken steps to protect against this, or the loss of an employee through illness for several months, by having key employee insurance in place.

The chances of either of these scenarios occurring is high, with a business with four key male employees facing a 29 per cent chance one will die before retirement and a 68 per cent chance of one having a critical illness, according to Scottish Provident.

"Small business owners need to improve their knowledge of how to protect their business and their employees, in case illness or death should occur," commented national corporate sales manager, Jerry Bayman.

Firms can arrange cover for key workers online, with a study by Defaqto revealing that more insurance products are becoming available for small businesses on the internet.

Posted by Daniel Frost