Many SMEs are concerned that they don’t have enough insurance, but remain uncertain about what types of insurance they need to protect themselves. For example, insuring your key personnel can provide vital protection if they are unable to work. This is important even for single-person outfits, with about half of small business owners saying their businesses would be unable to operate if they were medically disabled. It is also important to ensure that you could buy out a sick, disabled or deceased business partner’s stake, for the good of both your business and that person and his/her family.
- Many small business owners are not sure which kinds of insurance they need to protect their business if something unexpected occurs.
- Almost half of small business owners say that their business would not be able to operate for a year if the owner was incapable of working.
- Succession planning is very important, and it will enable a business to continue or be sold should an owner die or become incapacitated.
“Covering the most important people in your business – such as directors, executives and managers – is crucial, particularly if their inability to work could be financially devastating. The costs of hiring to fill their role, training and covering payroll expenses can quickly add up, so it is worth ensuring your insurance factors this in.”