Entrepreneurs 'may be placing livelihoods at risk'

A lack of insurance may see the majority of sole traders left in a precarious position, it has been reported.

British entrepreneurs could be placing their business at risk, new research suggests.

Figures released by Scottish Widows reveals that four-fifths of sole traders who have a "key person" in their business lack insurance to help cover the cost of replacing or protecting against loss should such a worker be unable to perform.

And as 86 per cent of those questioned claim that their business' profitability and survival could be severely affected in the event of the loss of one person, such news could impact upon entrepreneurs' ability to manage business accounts

Pointing out that sole traders are "the engine of the UK economy", protection market director Clive Allison states the research "highlights that without suitable protection in place, a serious illness, disability or death could be the last straw for these vital grass root businesses".

Entrepreneurs assessing their business bank account requirements may also be interested in recent comments from Work Wise UK chief executive Phil Flaxton who noted that confidence among firms is rising as many are looking to take on new employees and retain existing staff.

By Joe Letts