Larger companies more aware of group income protection

However companies with less than 100 staff appear more unfamiliar with the term than bigger ones, as a quarter reported they had never heard of the group risk benefit.

Overall, 15% of the 400 organisations surveyed by Reed Business Insight said they had never heard the term group income protection.

And 32% added that they had only heard of the term but would not be able to explain any more about it.

Conversely, 35% said they were familiar with it and could explain more detail, with a further 18% aware of both the product and providers offering it.

Businesses with less than 100 employees were most likely to have either never heard the tern (27%) or only aware of the name (41%).

The results also showed that firms operating in the service sector were more likely to have an advanced knowledge of GIP than those in general industry, despite similar numbers having never previously heard of it (15% and 13% respectively).Legal & General managing director of group income protection Diane Buckley, 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," she added.

The research surveyed 400 businesses, split into 5 groups of 80 by size.

The 5 groups were businesses with between 10 and 99 employees, 100 and 249 employees, 250 and 499 employees, 500 and 999 employees, and with 1,000 employees or more.

Service sector businesses made up 240 of the 400, whilst 160 were in general industry.