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Businesses are 'reliant' on core employees
Businesses are reliant on a small number of core employees, which they would be lost without with, according to new research.
A study by Scottish Widows found that 67 per cent of businesses have not taken the necessary steps to insure such pivotal workers, which could leave them exposed to loss of profitability and even complete commercial failure.
Research from small business insurers Coverzones has also shown that 38 per cent of SMEs have reduced their insurance cover during the recession.
Malcolm Tarling, a spokesperson for the Association of British Insurers (ABI), said that the Scottish Widows research suggests that a number of businesses are failing to realise the importance that their staff play in the running of the company and are not taking measures to insure them adequately.
"This data also shows that some businesses do perhaps rely too much on the expertise, skills and ability of one or two key employees and this survey shows that those businesses need to ensure those key assets are protected," he said.
The research, which surveyed over 500 UK businesses, found that four in five (81 per cent) were dependent on a key employee whose loss would seriously impact the profitability and/or survival of the business.