A new study conducted by Norwich Union has revealed that life insurance is particularly popular amongst Britain’s entrepreneurs. According to the statistics, over 40 per cent of entrepreneurs have life insurance, compared to just over 35 per cent of the population as a whole.

And it seems entrepreneurs like to be insured in other areas as well, with 20 per cent having a dental or health insurance policy, again a much higher figure than the rest of the population. Which is just as well as the same survey carried out by Norwich Union discovered that entrepreneurs with small businesses are feeling the effects of the credit crunch and it is having a detrimental effect on their health.

More stressed bosses

The majority of small business bosses admitted to being more stressed than usual at the moment, with over half citing an economic downturn as their main cause of stress. There were reports of such severe stress that many were not getting a full night sleep for nights on end due to waking up worrying about the economy.

As a result, many have reported suffering with more minor illnesses than usual, being struck down with headaches, colds and ulcers. These illnesses are all commonly associated with stress. One in six small business owners reported regularly waking up in the night feeling nervous and finding themselves unable to get back to sleep.

Bosses may be particularly scared by the credit crunch as despite being well insured in other, more personal areas, few actually had robust business protection policies putting their business and employees at risk.

More economic crisis ahead

Trevor Bailey, Director of Protection at Norwich Union, said that he is personally very concerned by the way in which small business owners are reacting to the credit crunch. He believes that this high level of worry among these business owners indicates that we still have not seen the worst of the economic crisis and there is much worse to come.

“The small business sector is a recognised barometer of the overall health of the UK economy. That a significant number of senior managers are stressed to the point of waking up in a cold sweat is a real concern,” he said.

Mr Bailey expressed concern over the matter, indicating that we can really see how much trouble our economy is in by turning to the smaller businesses. With larger banks and insurers folding around us, many fail to examine the struggle of the smaller business owners who make our country what it is today. However, he did point out that Norwich Union has seen an increase in the number of small business managers taking out business protection policies as a result.

“When business is unpredictable managers look to negate those risks that are within their control. As a result, we are seeing a marked increase in demand for business protection products,” he said.

Despite the high number of small businesses taking out protection policies being an indicator of how dismal the economy is, it is surely a small benefit to us if our businesses are starting to take the initiative to protect themselves more securely?