The truth about Business Protection every adviser needs to know!

The UK is a bustling marketplace with 5.5 million private sector businesses¹.  SMEs (small and medium-sized enterprises) make up 99% of the business population, employing 60% of the private sector workforce and accounting for almost half of the UK business turnover².  Yet, many of these businesses are like a ship without a lifeboat, vulnerable and unprotected. Did you know that a whopping 52% of businesses consider the death of an owner or key employee as the number one risk to their future?

Even more startling, 59% would cease trading within a year if they lost a key person.³  This protection gap is a golden opportunity crying out for a solution!

Financial risks 

Businesses face financial monsters lurking under the bed. The death or illness of a key employee can unleash a flood of financial risks – think cash needed for loan repayments, loss of profits, recruitment costs, and even buying the share of the deceased or ill owner's part of the business.

Executive income protection, continuity and succession planning, tax-efficient life cover, and director loans are critical ingredients in the business protection recipe. Advisers, roll up your sleeves and help businesses tame these monsters!

Creating the need

The challenge lies in creating the need for protection. Every five minutes, someone in the UK is admitted to hospital following a heart attack - that’s around 100,000 admissions annually.⁴

Poor mental health costs employers a staggering £51 billion each year.⁵  Advisers can paint a vivid picture for business owners about the potential impact of losing a key person. It's time to create a sense of urgency and get that drama rolling!

Identifying opportunities

Advisers can uncover opportunities for business protection, start with existing clients and explore professional connections with accountants, solicitors, and commercial loan teams. Reciprocation is your secret weapon – create agreements to refer customers between businesses, generating additional income streams and strengthening professional networks.

Get the conversation started by asking clients what they want to happen to their shares if they die, their preferences for selling shares if they suffer from a critical illness, and their desires for paying off business debts. Tailor protection solutions to meet these specific needs, and you've struck gold!

Advisers can point out common problems faced by businesses, like the lack of a clear plan for transferring shares on a shareholder's death, potential business failure due to the death of a key person, and difficulties in repaying business loans. By signposting solutions, advisers can emphasise the importance of having a clear agreement and adequate funds in place.

Reviewing clients' company accounts can help identify opportunities for shareholder protection, key person protection, and loan protection. Recommend annual reviews to ensure staff turnover, new business figures, and loan repayments are reflected in the level of protection – steer clear of that iceberg!
 

Continuity and succession planning

Continuity and succession planning are vital. Advisers can help businesses pinpoint key employees and assess the impact of losing them. A four-step process for business continuity includes identifying key employees, quantifying financial risk, creating and explaining the solution, and implementing the solution.

With this blueprint, advisers can ensure businesses are well-prepared for the unexpected.

Supporting employees

Supporting employees, especially those with mental health conditions, is another critical aspect of business protection. Health and wellbeing services offer emotional and practical bereavement support. Business protection policies which include added value services for employees can be worth their weight in gold.  By highlighting these support services, advisers can demonstrate the comprehensive benefits of business protection solutions.

Employee health and wellbeing services play a pivotal role in minimizing absenteeism and presenteeism within businesses. Absenteeism, where employees are frequently absent due to health issues, can significantly disrupt workflow, leading to reduced productivity and increased operational costs. Presenteeism, on the other hand, occurs when employees attend work despite being unwell, resulting in diminished performance and potential long-term health complications.

By investing business protection, SMEs can not only get the crucial safety net of a financial payout but also with some providers get access to health and wellbeing services for their employees, which in turn provide additional support that tackles both absenteeism and presenteeism head-on. These services, which may include mental health support, personal wellbeing programs, and proactive healthcare initiatives, ensure that employees are healthier, both mentally and physically. When employees feel supported and their health concerns are addressed promptly, they are less likely to take unnecessary sick leave or struggle through their duties while unwell.

The ripple effect of improved employee health is profound. Healthier employees are more engaged, motivated, and capable of performing at their best. This boost in productivity translates into tangible financial savings for businesses. Reduced absenteeism means fewer disruptions and less need for temporary staffing. Similarly, addressing presenteeism by ensuring employees are genuinely fit to work reduces the risk of mistakes, accidents, and poor performance, all of which can have costly repercussions.

On average, for every £1 spent on supporting their people’s mental health, employers get nearly £4.70 back on their investment in improved productivity.⁵

Moreover, businesses that prioritise employee health and wellbeing create a positive work environment that fosters loyalty and reduces turnover. Employees who feel valued and supported are more likely to remain with the company, thus decreasing recruitment and training costs associated with high staff turnover.

The financial impact

Investing in employee health and wellbeing services is not merely a compassionate gesture; it is a strategic financial decision. By reducing absenteeism and presenteeism, businesses can enhance productivity, save money, and ensure a more stable and resilient workforce. This proactive approach to employee health is a cornerstone of effective business protection, safeguarding against unforeseen financial strains caused by poor employee health.

For small businesses with under 250 employees, absenteeism costs their business £547 per employee per year.⁵

Meanwhile, presenteeism costs UK businesses £103 billion annually, with employees losing an average of 44 days of productivity each.⁶

As advisers, highlighting these benefits to clients can help them understand the comprehensive advantages of health and wellbeing services. By demonstrating the direct correlation between employee support and business profitability, advisers can paint a vivid picture of the potential savings and increased productivity, making a compelling case for investing in these essential services.

By embracing health and wellbeing initiatives, businesses can create a robust safety net that not only supports their employees but also secures their own financial future. It’s a win-win scenario where everyone benefits – the employees, the business, and ultimately, the overall economy.

Addressing the protection gap, highlighting financial risks, and providing practical solutions can help businesses safeguard their future. The opportunities for advisers to build connections, engage clients, and offer comprehensive protection solutions are significant. By embracing business protection, advisers can play a crucial role in ensuring the long-term stability and success of their clients' businesses.
 

Sources:

¹UK business statistics and facts 2025

²Finder 2025

³State of the Nation report, 2021

⁴British Heart Foundation, 2025

⁵Deloitte, May 2024

⁶IPPR 2024