Integra News A Lottery Win could cripple your Business

A Lottery Win could cripple your Business

I was recently reading a post on LinkedIn discussing the importance of businesses taking Key Person Insurance. Right up my street of course!

Whilst interested in the article itself, I was much more taken by one of the comments. Someone asked the author if it were possible to insure their business against the risk of a syndicate lottery win wiping out a team or department!

On the one had I was intrigued and also pleased that a business was thinking about its exposure. It also made me wonder if that business had covered some of the more prevalent risks it is exposed to, like death or critical illness of a director or key person.

What are the comparative risks?

The odds of a syndicate of 10 people buying 10 tickets winning a jackpot is still extremely low. If the statistics on are to be believed just 1 in 13,983,816. Those are pretty slim odds yet I guess it doesn’t stop people staking £1 per week in the hope of a win.

In a Royal London presentation, I saw that a 49 year old male director was considered to have a 14% chance of dying by age 70. That’s 1 in 7.

If we said that given the syndicate could enter the lottery 52 times a year for 21 years in that same term then their odds of success become 1 in almost 13,000. Better odds granted, but still nowhere near the risk to the director.

Which risk seems the most important to cover?

Incidentally, the syndicate lottery protection does exist. It seems it’s a fairly standard feature of business interruption policies.

I’d therefore be delighted to see a firm put this in place however, I naturally would hope they would therefore see the value in protection against the risk of a director or key person to the business passing away.

In reality, both should form part of a disaster recovery strategy for a business that wants to continue to shine whatever storms might be coming their way.

Act to reduce your business risk.

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Written by Gavin Culverhouse                                                                                            Phone: 0117 251 0083 (option 2)                                                                                Email: