Key person risks are critical for many UK small businesses
continuitycentral.com | August 21, 2019
More than a quarter (26 percent) of small businesses in the UK would have to immediately close if a key person died or became critically ill, according to research by Legal & General into the business protection market. A further 26 percent of companies said they would cease trading within a year in these circumstances. Legal & General’s State of Nation’s SMEs survey also found that 15 percent of businesses which had already suffered such an event had shut their doors. A key person is someone whose illness or death would directly cause a financial issue for a business, such as a fall in revenue, loss of clients or even a loss of efficiencies. Nearly two-thirds (63 percent) of the businesses Legal & General surveyed said they had more than one key person.