Majority of SMEs vulnerable to key person loss: Legal & General

Finds 'State of the Nation' report

John Brazier
clock • 2 min read
Majority of SMEs vulnerable to key person loss: Legal & General

Six in 10 UK SMEs would go out of business in less than one year of a key person dying or becoming critically ill, according to new research from Legal & General.

The insurer's 2021 State of the Nation report surveyed 500 UK SME owners and revealed that many are more financially vulnerable than before the onset of the Covid-19 pandemic. The death of an owner or key person was highlighted as the biggest risk facing SMEs by 52% of respondents, while the owner or key person suffering a critical illness Just under six in 10 (59%) of respondents said that should key person loss occur the business would cease trading in less than 12 months. Of those SMEs surveyed,...

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