And small business is definitely big business. Most private sector businesses are very small in size yet contribute to nearly half of all UK private sector turnover.
62 per cent are sole proprietorships and 99.3 per cent employ less than 50 people.
Over 8 million people in the UK are business owners or work in a firm employing less than 10 people – to put that in perspective that’s 1 in 4 of the working population. And probably a large chunk of your existing client base.
The number of small businesses continues to grow year-on-year. That’s all rosy, but what happens to a business - and the people within and around it - when disaster strikes?
Business owners already protect many of the important things that keep the business running smoothly, like property, fleets and stock. Yet the most valuable asset to any business is its people, as without them, a company’s survival can be at serious risk.
Protecting people should be an integral part of any business plan
According to LV=, research shows just 10 per cent of small and medium sized enterprises (SMEs) have protection, leaving almost 4m businesses financially vulnerable.
And the reasons business owners claim when dismissing or putting off life insurance will strike a familiar chord… they don’t have time, they don’t see the need, they consider it expensive and fear it won’t pay out.
And advisers tell us Business Protection can be more difficult to write compared to personal cover. Larger cases slow down the underwriting process, and trusts can seem complicated.
But, Business Protection is just simply life insurance and critical illness cover, written on the life a business owner, or key employee.
Five Business Protection resources advisers find useful
Advisers like you are using the following tools and information to help them write Business Protection with LV=:
Business Protection calculators to help you value a business, work out an appropriate amount of cover, equalise premiums and even calculate the risk of a key person dying or being diagnosed with a critical illness.
Refreshingly simple to use, the calculators can be accessed on the move (on your tablet or phone) and can generate a bespoke risk report for your client.
The tax treatment of Business Protection premiums and proceeds aren’t always obvious and depend on a number of factors, including how the policy is written and what type of business is taking out the cover.
So to help you and your client understand the implications, we’ve highlighted the main areas at our website.
With a number of Business Protection products and solutions in the market, it can be difficult choosing the right provider.
With LV=, you’ll benefit from dedicated, specialist support and your clients will have access to a range of exclusive added-value benefits.
We’ve developed a full range of jargon-free literature for you and your clients. Our sales aids will help you get familiar with Business Protection from LV=.
And you can use our client guides to support and justify your recommendation.
We know even the most experienced adviser has questions from time to time, so at LV= we have invested in comprehensive Business Protection training for all our service teams. We can give you guidance on how to write the cover and which trust forms to use.
Our flexible approach to underwriting and generous financial limits can help you write the cover faster, even with larger cases.
Extra protection that makes a real difference to running a business
Running a business is difficult enough, without having to worry about legal issues. SME’s rank their top two regulatory challenges as employment regulations (37 per cent) and health and safety (28 per cent).
And in the absence of in-house experts, seeking legal advice can be expensive.
So at LV=, we’ve partnered with a firm of business solicitors to offer business clients access to a free legal advice line called LV= Business Care.
This 24/7 service is available to all business owners who take out LV= Business Protection and offers advice on a number of commercial issues, including: employment law, health and safety issues, commercial risks and advice on contracts.
68% of SME’s we surveyed said they pay for similar services, and those businesses that have used them find them valuable, but with LV=, your clients can benefit from this vital support at no extra cost to the businesses.
To find out more about LV= and how we can help you maximise the Business Protection opportunity, visit www.LV.com/businessprotection.
Marcus Primhak is Business Protection Manager at LV=