Business Protection Statistics UK 2026: What 2,019 Business Owners Told Us
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How many UK businesses have business protection in place? Fewer than you might think. 58% of UK business owners are either unprotected or unsure whether they have any business protection at all. That is the headline finding from new research by Scottish Widows, carried out by YouGov with 2,019 business owners in March 2026.
The same research shows 94% of businesses rely on at least one key person, almost a third carry commercial debt, and 45% of owners have never taken advice on protecting any of it. Here are the figures that matter most.
Key facts
- 58% of UK business owners are unprotected or unsure whether they have business protection (Scottish Widows / YouGov, 2026).
- 94% of UK businesses rely on one or more key people, and 23% could keep trading for a month or less without one.
- 32% of UK businesses hold commercial debt, and 29% of those owe between £100,000 and £1 million.
- 45% of UK business owners have never sought advice on business protection.
- 40% of UK business owners have never heard of relevant life insurance, and 48% have never heard of executive income protection.
What does the 2026 business protection research cover?
The Scottish Widows Business Protection Research is the first large study of the UK business protection market in around five years. YouGov surveyed 2,019 business owners and senior decision makers, ranging from start-ups to firms turning over more than £1 million.
| Research detail | Figure |
|---|---|
| Business owners surveyed | 2,019 |
| Female / male respondents | 720 / 1,299 |
| Fieldwork | March 2026, online (YouGov) |
| Adviser interviews | 20 in-depth interviews (NMG) |
Source: Scottish Widows Business Protection Research, conducted by YouGov, March 2026 (2,019 GB business owners and senior decision makers).
How exposed are UK businesses right now?
UK businesses are trading in a tough market. There were 5.7 million private sector businesses at the start of 2025, of which 5.64 million had fewer than 50 employees, according to the government's business population estimates.
Business creation is also slowing. In Q1 2026, 78,650 businesses joined the UK register, down 8.0% on a year earlier, while 83,195 were removed. On top of that, one in 196 companies in England and Wales entered insolvency in the 12 months to May 2026, based on Insolvency Service company insolvency statistics.
How reliant are UK businesses on key people?
Almost every business depends on someone. 94% of owners say they have one or more key people, yet only 15% name losing one as a top concern. That gap matters, because almost a quarter of businesses say they could only keep trading for a month without that person. We look at this in detail in how long your business could keep trading without a key person.
| What worries UK business owners most? | Share of owners |
|---|---|
| Economic downturn | 46% |
| Rising costs and inflation | 34% |
| Loss of a major contract or client | 25% |
| Competition from other firms | 24% |
| Cyber attack or data breach | 19% |
| Loss of a key person | 15% |
Source: Scottish Widows Business Protection Research, conducted by YouGov, March 2026 (2,019 GB business owners and senior decision makers).
How many business owners have heard of business protection?
Awareness of the main types of business protection is low. 38% of owners have never heard of business life insurance, and almost half have never heard of executive income protection. Relevant life insurance, one of the most tax-efficient ways for a director to arrange life cover, is unknown to four in 10. You can read how it works in our relevant life insurance guide.
| Type of business protection | Heard of it, don't know what it is | Never heard of it |
|---|---|---|
| Business life insurance | 18% | 38% |
| Executive income protection | 18% | 48% |
| Relevant life insurance | 16% | 40% |
| Business critical illness cover | 19% | 24% |
Source: Scottish Widows Business Protection Research, conducted by YouGov, March 2026 (2,019 GB business owners and senior decision makers).
Who do business owners turn to for advice?
Most business owners talk to their accountant, not a financial adviser. 70% use an accountant, but only 19% use a financial adviser, and 45% have never sought any advice about business protection. Only 24% have a dedicated bank relationship manager.
| Professional service used | Share of business owners |
|---|---|
| Accountant | 70% |
| Solicitor | 30% |
| Business banking relationship manager | 24% |
| Financial adviser | 19% |
Source: Scottish Widows Business Protection Research, conducted by YouGov, March 2026 (2,019 GB business owners and senior decision makers).
Where are the biggest protection gaps?
Three gaps stand out in the 2026 data. Business debt is one: 19% of owners with borrowing are not sure how it would be repaid if they died, which can put personal assets on the line. We cover the details in business loan protection and personal guarantees.
Share ownership is the second. 32% of owners do not know how their shares would be bought if they died, and 23% expect their co-owners to find the money from personal wealth. Our article on what happens to shares when a shareholder dies explains the options.
Personal income is the third. 58% of owners worry about losing income through illness, and 13% could support their household for a month at most. One in 10 businesses would stop trading straight away if the owner could not work. Read more in income protection for business owners.
What do business owners want before buying cover?
Business owners want clear, personal answers. When asked what would help them decide, 51% said personalised recommendations and 42% wanted typical costs by age group. Proof that insurers pay claims mattered to 31%.
| Support business owners would find helpful | Share of owners |
|---|---|
| Personalised recommendations on cover amount and term | 51% |
| Clear information on typical costs by age group | 42% |
| Information on additional benefits included | 36% |
| Statistics on claims and payouts | 31% |
| Guidance on how to budget for cover | 26% |
Source: Scottish Widows Business Protection Research, conducted by YouGov, March 2026 (2,019 GB business owners and senior decision makers).
If these figures sound familiar, a specialist adviser can show you where your gaps are and what closing them could cost. Executive Life is authorised and regulated by the Financial Conduct Authority.
Frequently asked questions
What percentage of UK businesses have business protection?
Fewer than half. The 2026 Scottish Widows research, conducted by YouGov with 2,019 business owners, found that 58% are either unprotected or unsure whether they have any business protection in place.
How many UK business owners rely on key people?
94% of UK business owners say they have one or more key people their business relies on, according to Scottish Widows research conducted by YouGov in March 2026. Almost a quarter (23%) say they could keep trading for a month or less if they lost one.
How many business owners have never taken advice on business protection?
45% of UK business owners have never sought any advice about business protection. Only 19% currently use a financial adviser, compared with 70% who use an accountant.
How many business owners have heard of relevant life insurance?
Four in 10 UK business owners (40%) have never heard of relevant life insurance, and a further 16% have heard of it but do not know what it is. Awareness of executive income protection is lower still, with 48% never having heard of it.
How many UK companies become insolvent each year?
One in 196 companies in England and Wales entered insolvency in the 12 months to 31 May 2026, according to the Insolvency Service. There were 1,868 company insolvencies in May 2026 alone.
Last reviewed: September 2026. Next review: April 2027. Tax rates and thresholds are subject to change.
Written by
Alex Ogden DipFA | Director | Executive Life
Alex Ogden DipFA holds the Level 4 Diploma for Financial Advisers (DipFA) awarded by the London Institute of Banking and Finance (LIBF), the FCA's benchmark qualification for retail investment advisers. He is authorised by the FCA, Ref: AJO01072 (FCA register).
Executive Life is authorised and regulated by the Financial Conduct Authority. This article is for information purposes only and does not constitute financial advice. Tax treatment depends on individual circumstances and may be subject to change. Always seek professional advice before making financial decisions.