A quarter of small firms have never heard of Group Income Protection (GIP) products according to research conducted on behalf of Legal & General.~
The survey found that a further two fifths of small firms had only heard of the term, but could not explain what GIP products offer.
The findings suggest that continued lack of awareness of GIP products and the services they provide is holding back absence management in small firms. GIP products can help to reduce the absence rate of businesses, but L&G says the survey suggests many small firms are unaware of the potential benefits.
Group Income Protection aims to provide insurance to pay income protection benefit to employees who cannot work because of long-term illness or injury.
Diane Buckley, managing director of group income protection at Legal & General, said: “These figures show that many small employers are struggling to ensure that good quality support is in place to help employees. It is concerning that over half of small businesses are unaware of GIP products and the difference they can make.
“To reduce sickness absence it is vitally important that small employers consider Group Income Protection products: Legal & General have developed an effective Group Income Protection package that offers support to small firms with as few as 50 employees.”