More than 90 per cent of self-employed traders and business owners have no critical illness cover – leaving themselves vulnerable to financial loss if they were to have an accident or fall ill.
Scottish Widows, which published the figures, found that this amounts to around 4.4 million people across the country.
Taking extended sick leave costs the self-employed, on average, around £67,550, it added.
When asked why the nation abstains from cover, four in 10 uninsured, self-employed workers insist they don’t need critical illness insurance or don’t see it as a financial priority.
But a further 76 per cent of insured business owners say they don’t have any employees or partners to cover for them should they fall ill.
In the same light, half of self-employed traders say they don’t insure the equipment used to run their business – such as power tools, laptops, and mobile phones. And 70 per cent say they have not taken out life insurance – a policy which pays out to dependents should you suddenly die.
This is despite that fact just under half of traders have no contingency plan or savings in place, while a further 22 per cent have a mortgage to pay.
Jackie Leiper, Protection Director at Scottish Widows, said: “Self-employed workers put immeasurable amounts of time and money into getting their businesses off the ground, but our research reveals that they’re failing to protect their greatest asset – themselves. This is particularly concerning when you consider that this workforce has a more limited range of working-age welfare benefits.
‘”Self-employment and self-reliance go hand in hand, so it’s absolutely vital that these workers have a back-up plan in place should the unexpected happen, especially with so many of their families being solely reliant on their income.
“No one wants to think about the unexpected happening, but having a financial back-up plan will provide peace of mind and allow people to enjoy the many benefits that self-employment brings.”