Business at risk for lack of cover
Too many business owners are afraid to confront their own mortality, according to David James, Senior Director , with offices in Birmingham, Wolverhampton and London.
But that risks putting their much-loved firm into jeopardy should the worst happen, he cautions.
Nearly 40 per cent of companies, including 57 per cent of SMEs, have no life insurance policies in place to help buy the shares of a recently deceased business owner, according to Legal & General.
The research also revealed that 30 per cent of owners had no Will and no specific instructions on what should happen with their shares upon death.
Mr James said: “Owners are naturally proud of their achievements in building up a business, but if anything happens to those at the top then there is the possibility of a vacuum. At worst it could paralyse the business and even see it cease trading, costing loyal staff their jobs.
“Companies need both a plan and some form of protection in place to provide the necessary capital.
“These sorts of issues are easily overlooked and sidelined in a busy entrepreneurial atmosphere. But they need to be addressed sooner rather than later.
“Many businesses have collapsed in such circumstances with shares unable to be bought or caught in probate.
“There are a number of potential solutions, and professional advice should always be sought to find the most appropriate”.
For further information, please contact:
David James, Senior Director,