Legal & General has launched 'Rough Guide to Business Protection' in partnership with publisher Rough Guides, to raise awareness of the many risks UK SMEs face, Professional Adviser's sister magazine COVER has revealed.
The new guide is aimed at the owners of small and medium-sized businesses, as well as advisers across the UK.
The guide presents the information in five sections:
• Understanding the risks: the business lifecycle, business structures and an introduction to insurance
• Paying off debts: insuring commercial debt and the risks of not having Business Loan Protection
• The value of a key employee: how to identify key employees and the benefits of Key Person Protection
• Protecting the ownership of your business: how Share Protection and wills can secure the future of a business
• How your business can protect your family: the importance of Relevant Life Plans and Group Benefit options
Richard Kateley, head of Intermediary Development at Legal & General [pictured], said: "SMEs are the backbone of the UK economy and are a vital source of both revenue and employment, but many of them are running with big risks by not fully understanding what might happen to the business should a key person be unable to work or if a large debt is called in.
"A great number of SMEs don't have disaster recovery plans in place and it is essential that they not only have these, but also some form of business protection policy to protect against a critical event.
"These will help not only secure the future of that business should the worst happen, but also those employees whose livelihoods are dependent upon it."
He added: "At the many adviser training events we have run this year I have been continually asked to produce something that advisers can use with their clients which is generic and simple, and this guide is it.
"We are very proud to have worked jointly with Rough Guides to provide this useful tool for both SME owners and advisers, and advisers should be able to use the information within it to start conversations with potential new clients about the importance of business protection, helping SMEs protect themselves against current and future risks to their operations. I also hope it will encourage SMEs who don't have an adviser to go and seek advice from one."
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