Most financial advisers are ignoring business protection for clients, according to a study by Aegon which has released a new guide to business protection insurance.

The company says that advisers have cited a lack of business focus as a top challenge in selling providing business protection.

According to a 2018 survey, new business protection policies only represented 1% of new individual policy sales reported in 2018.

And business protection just “wasn’t a business focus” for 60% of advisers responding to a 2019 survey.

According to Swiss Re, more than 2m new individual policy sales were reported in 2018 but new business protection policies represented just 1% of them.

In terms of client interest, 70% of respondents said clients believed they would create a Plan B should the worst happen, while 66% said clients did not see the need and 64% said clients were not interested enough.

But with 5.9m businesses in the UK, Aegon believes more advisers should grasp the opportunity of advising on business protection in 2020.

Stephen Crosbie, protection director at Aegon UK, said: “Whether you are a pensions adviser, a private client adviser or an adviser with links to solicitors and accountants, with around 5.9m businesses in the UK, it’s unlikely that you would not have come across a client who could benefit from business protection.

“And advisers who aren’t selling business protection are missing out on a potential income stream.”

“For many, their businesses are an integral part of their lives, central to their day to day life. So it makes sense that the business should be given the same financial protection as a member of the family or asset, if not more.

Among the areas covered in the guide are: setting up business protection arrangements, tax and trust implications on different arrangements, how to identify potential clients and how to develop professional connections.

The new guide is available from Aegon.