Small and medium-sized enterprises (SMEs) are being forced to rethink how they protect both their businesses and employees as rising costs continue to squeeze margins.
Anthony Miller, CEO of Simply Financial Services, said there is little to no financial safety net for a large potion of workers employed by SMEs if they are unable to work.
Importance of income protection
He said these employees lack access to income protection, critical illness cover of life insurance through their employers. In an already strained economic climate, he said, the sudden loss of income can have severe consequences for both households and business.
Group risk cover, including life, disability and income protection, has traditionally been more common among large corporations, while smaller businesses have largely been excluded due to high costs and the administrative complexity involved in managing such benefits.
Miller said the current economic strain is accelerating demand for simpler and more affordable solutions.
Making employee protection more accessible to SMEs
He said Financial Services has recently expanded its Flexi Staff Cover offering adding Critical Illness Cover and Temporary Income Protection with the aim to make employee protection more accessible to SMEs that previously could not afford or manage traditional group cover.
“Businesses of every size are feeling the pressure right now, from fuel costs to higher borrowing rates. But meaningful staff cover does not have to be complicated or out of reach. Flexi Staff Cover can be sorted online in minutes or through an adviser, at a cost that works for businesses that have never had access to this kind of protection before,” said Miller.
Policies arranged in a matter of minutes
He said employers can set up and manage cover online without paperwork, and policies can be arranged in a matter of minutes. This is particularly important for smaller businesses that do not have dedicated human resources teams.
Critical Illness Cover provides a tax-free lump sum payout upon diagnosis of serious conditions such as cancer, heart attack or stroke, with payouts based on severity. Temporary Income Protection, meanwhile, replaces a portion of an employee’s salary if they are unable to work due to illness or injury.
Both benefits are integrated into existing payroll systems and sit alongside life, disability and funeral cover within the broader Flexi Staff Cover product.
“This is the kind of moment that exposes whether employers have thought about the risk sitting inside their payroll.
“The question every employer should be asking is: if one of my people can’t work tomorrow, what happens to them, and what happens to my business? That’s a risk assessment conversation, not just a benefits conversation,” said Miller.
- SMEs face rising costs squeezing margins, prompting a need to rethink business and employee protection.
- Many SME employees lack access to income protection, critical illness cover, or life insurance, leaving them vulnerable to income loss.
- Traditional group risk covers are usually unaffordable or complex for SMEs, but demand for simpler, affordable solutions is growing.
- Simply Financial Services expanded its Flexi Staff Cover to include Critical Illness Cover and Temporary Income Protection tailored for SMEs.
- Flexi Staff Cover policies can be arranged quickly online without paperwork, integrating with payroll and providing crucial financial safety nets for employees and businesses.
