Majority of SMEs vulnerable to key person loss - L&G

Finds 'State of the Nation' report

John Brazier
clock • 2 min read

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 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, 94% recognised that they had at least one key person at the business. Jeff Woods, he...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your Business

Small firm, weaker hand: The reality of selling a financial planning practice

Small firm, weaker hand: The reality of selling a financial planning practice

'The strongest position is an attractive, prepared practice whose owner has choices'

Gareth Fatchett
clock 10 November 2026 • 4 min read
Adviser revenue remains main bonus metric at majority of large firms

Adviser revenue remains main bonus metric at majority of large firms

Firms focused on organic growth but miss incentive opportunity

Jenna Brown
clock 10 November 2026 • 3 min read
Editor's View: When women come together

Editor's View: When women come together

The editor's Friday Night Takeaway from 6 November

Jen Frost
clock 06 November 2026 • 1 min read