Employers are neglecting business protection and employee benefits in a bid to cut costs, according to a new study.
Results from BDRC Continental show only one in ten businesses are protecting themselves against the impact of a key member of the business being unable to work.
The business research specialists' findings show just 11% of all businesses and 9% of SMEs (businesses with a turnover of less than £1m) take out business protection insurance such as keyman cover.
And only 7% offer their employees group income protection.
The research also revealed almost half (46%) of SMEs do not provide benefits to any of their employees, with 72% of newer companies (trading since 2006) and 68% of very small businesses (with a turnover of less than £100,000) not offering benefits.
When it comes to receiving staff benefits, the best industry to work for is the Service sector (60%), while the worst is Retail & Distribution, where only 44% offer benefits.
Contributory pension schemes are the benefit most likely to be on offer, although only one third (34%) of all businesses offer a scheme to some employees and the figure is even lower for small businesses (31%).
Life insurance and private medical insurance were the next most commonly offered benefits.
Shiona Davies, director of business to business for BDRC Continental noted that companies need to follow the lead of individuals.
"Consumers may be starting to take more responsibility for their financial planning needs, with an increase in the sale of critical illness and life insurance, but this survey is clear evidence that the vast majority of small businesses are failing to protect themselves against the business impact of losing key employees," she said.
