Could your business cope with the loss of a key person?
Scott Robinson is our newest team member at Sabre Financial. With extensive experience in the service industry, Scott will be advising on both personal and business protection for existing and new clients in the South Hams.
Scott comments; the UK business landscape has changed significantly with the recent boom in small and medium size enterprises – today there are 5.2 million businesses, employing 15 million people. But how many business owners could unknowingly be leaving themselves and their business financially vulnerable?
For example, if a key person were suddenly unable to work, or died, without the right protection in place, that business’s ability to trade and survive would be at serious risk.
In a recent study, commissioned by insurance company LV=, 55% of business’s said they would not be able to survive the year after the loss of a key person, whilst only 4% were confident there would be no threat to the company. Asked how long it would take to return to the same level of profitability or efficiency after the loss of a key person, 54% said they would never recover, while 11% estimated that it would take at least a year.
Of the 45% that would expect to survive in the event of losing a key team member, 17% would simply replace the individual in question and 13% would spread the work across the remaining employees. Others would pursue options such as cutting costs and dipping into the business’s cash reserves. In other words, firms are self-insuring by putting often piecemeal measures in place to cover eventualities. That 8% admitted they had never considered whether they would survive suggests a good number of firms are more vulnerable than they might anticipate.
With this is in mind, seeking independent advice on the protection needs of the business should be a priority. Get in touch with Scott at Sabre today, on 01548 856444 or firstname.lastname@example.org, to discuss how we can help protect your business.
Sabre Financial is a trading title of Sabre Financial Planning Ltd. Sabre Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority.
By Sabre Financial | Wednesday, March 30, 2016