84% of SMEs took out business protection after taking professional advice, research by Legal & General reveals

• 84% of UK SME owners who took out a business protection policy did so because of advice from a finance professional 
• Research reveals that 25% of small businesses were referred to an adviser by their accountant, highlighting the importance of professional connections
• Legal & General surveyed 800+ SMEs from a range of sectors as part of its ‘State of the Nation’s SMEs’ research

The survey of more than 800 SMEs found that financial advisers and other professionals such as accountants were central to raising awareness about the importance of business protection policies, such as Key Person insurance and Shareholder Protection, with 75% preferring to learn about the products from these professionals.

The research by Legal & General also found that professional networks continue to play an important role for financial advisers and SMEs, with a quarter of small businesses (25%) revealing that their accountant or solicitor referred them to an adviser about business protection. However, a business’s own connections also remained important, with a further 26% of SMEs saying that they chose an adviser who was recommended by their social or professional network. Nearly a fifth (19%) got in touch with an adviser after attending a seminar.

Research commissioned by Legal & General previously found that most SMEs were acutely aware of the importance of individuals within their businesses, with more than half (53%) believing they would cease trading in less than a year if an owner ,director, partner or key person becomes terminally ill, critically ill or die. However, of those without business protection, nearly a third (32%) had not considered purchasing this type of insurance, again showing the importance of advice in raising awareness of the cover and nudging businesses to take out a protection policy.