Half of businesses in the UK have corporate debt, according to new research by one organisation.
Insurance providers Legal & General surveyed members of the British Chamber of Commerce (BCC) and discovered that 50 per cent are indebted and only 48 per cent have insurance policies guarding important employees.
Head of specialist protection at the firm Clare Harrop said: “We now have up-to-date figures showing just how few businesses are prepared to handle an event such as the death or critical illness of a key person or business owner.”
This means the business protection gap stands at £1.1 trillion, which includes disparities in corporate debt, shareholder protection and key person protection policies.
According to the figures, 44 per cent of companies believed they would go out of business within a year if a key employee died.
In recent news, the BCC revealed that many firms are struggling due to late payments from their suppliers and customers.
By Francis Finch