Limited Company
Business continuity
Is there a need?
Businesses look to protect themselves against every eventuality, buying cover for their buildings, contents, materials and cars. However, the majority don’t cover their single biggest asset – their employees. According to research carried out by the British Chambers of Commerce in 2009, more than 60% of businesses have at least two key individuals. However, 44% of those surveyed said their businesses wouldn’t survive longer than 12 months if they lost one of these key people.
The likelihood of at least one partner/director dying before age 65*
The likelihood of at least one partner/director having a critical illness before age 65**
| Age | Number of partners/directors | Age | Number of partners/directors | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 10 | 1 | 2 | 3 | 4 | 5 | 10 | |||
| 35 | 7% | 13% | 19% | 25% | 30% | 51% | 35 | 29% | 50% | 65% | 75% | 82% | 97% | |
| 40 | 7% | 13% | 18% | 24% | 29% | 49% | 40 | 29% | 49% | 64% | 74% | 81% | 97% | |
| 45 | 6% | 12% | 17% | 23% | 27% | 47% | 45 | 27% | 47% | 62% | 72% | 80% | 96% | |
| 50 | 6% | 11% | 16% | 21% | 25% | 44% | 50 | 25% | 44% | 58% | 68% | 76% | 94% | |
Source: www.actuaries.org.uk/knowledge/cmi/cmi_tables
*Based on mortality data from TMN00 (temporary assured lives, male non-smokers, 1999-2002) at five or more years’ duration.
**CIBT02. Based on 1971-2003 population data and experience, published in SIAS paper Exploring The Critical Path, 2006. Males, stand-alone extended cover, including own occupation and total and permanent disability.