Eleos Survey Reveals Critical Protection Gap Among Small Business Owners

Most small business owners (84%) lack adequate financial protection, with 59% of entrepreneurs citing affordability as a key barrier.

DOVER, DE, UNITED STATES, November 20, 2025 /EINPresswire.com/ -- Eleos Life has released a new report on the protection gap affecting today’s small business community. According to their recent survey of small business owners and self-employed individuals across the US and UK, most lack a plan to protect their finances and their families’ livelihood if the event of illness, injury, or death.

The survey revealed 84.2% lack personal insurance, with more than one-third operating without any formal financial protection plan whatsoever.

The study examined small business owner attitudes toward insurance and embedded financial products—uncovering both critical vulnerabilities in the current market and unprecedented opportunities for embedded insurance solutions.


THE PROTECTION CRISIS REACHES SMALL BUSINESSES

The survey findings reveal a startling reality: while small business owners power the economy, most operate without the safety net personal finance policies provide. Among respondents:

- 36.9% have no formal financial protection plan
- 21.6% maintain partial plans with inadequate personal insurance coverage
- 18.0% rely solely on basic coverage through savings or minimal policies
- Only 15.8% possess comprehensive plans with adequate life insurance and disability coverage

"Small business owners aren't avoiding insurance because they don't see the value—they're being failed by traditional distribution models," said Kiruba Shankar Eswaran, CEO of Eleos Life. "Our research shows clear demand for protection, but conventional insurance simply doesn't fit how entrepreneurs actually work. The opportunity for embedded solutions is enormous."


BARRIERS TO PERSONAL PROTECTION

If the need is so clear, why aren't more entrepreneurs getting coverage? We asked them directly. Cost emerges as a major barrier to personal insurance adoption, cited by 59.5% of respondents.

The other major barriers reveal frustration with the insurance experience itself. Traditional insurance models require that business owners navigate complex applications, understand confusing terminology, and pay premiums that feel disconnected from their day-to-day lives. When asking small business owners about insurance, we found:

- 32.0% don't believe they need it at the moment
- 16.2% find insurance too complex or confusing
- 8.6% had a previous policy that lapsed
- 8.1% had difficulty getting approved

These barriers paint a picture of an industry that hasn't adapted to how small business owners work.

STRONG MARKET RECEPTIVITY TO EMBEDDED INSURANCE

Despite gaps in current coverage, small business owners demonstrate remarkable openness to new distribution models. When asked about purchasing insurance through business platforms they already use, 70.7% expressed interest:

- 19.8% are "very interested" and find it convenient
- 50.9% are "somewhat interested" depending on the platform

Eleos' research demonstrates that small business owners are ready to access personal protection through their trusted financial platforms. For business banking platforms, payroll providers, accounting software companies, and business loan providers, embedded insurance represents a great strategic opportunity:

- Market Scale: The market scale is substantial on both sides of the Atlantic—33.2 million small businesses operate across the United States, while the United Kingdom is home to 5.69 million small businesses.
- Revenue Potential: Embedded insurance allows brands to expand their offerings and generate new revenue from existing customer bases without building personal insurance infrastructure.
- Competitive Differentiation: Platforms offering comprehensive financial protection will have strategic advantages in crowded markets. The integration of protection products signals a commitment to holistic customer service that extends beyond transactional relationships.
- Customer Relationship Depth: By solving a critical pain point, platforms become more valuable and harder to replace, increasing customer lifetime value and reducing churn. Small business owners who access personal insurance through trusted platforms develop stronger loyalty and longer-term relationships with those partners.


IMPLEMENTATION SUCCESS FACTORS

Based on survey findings, successful embedded insurance offerings should prioritize:

✓ Simplicity – 40.1% are motivated by simple options

✓ Affordability – 59.5% cite cost as the primary barrier

✓ Contextual integration – 70.7% want it through platforms they already use

✓ Trust – 58.6% prefer banking platforms with established relationships

For more insights, the white paper is available for free at https://go.witheleos.com/small-business-report.


ABOUT THE SURVEY

Eleos conducted this comprehensive survey in October 2025, gathering responses from 222 small business owners and self-employed individuals across the United States and United Kingdom. Respondents represented diverse industries including retail/e-commerce (29.7%), professional services (28.4%), technology/software (12.6%), and construction/trade services (10.4%). The survey explored financial protection adequacy, insurance barriers, embedded insurance receptivity, and platform preferences.


ABOUT ELEOS LIFE

Eleos Life is a fully digital provider of embedded term life insurance, disability insurance, and income protection in the US and UK. By partnering with brands to offer policies through their digital platforms, the company is committed to closing the protection gap by making insurance accessible, affordable, and engaging for today's tech-centric consumers.

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Sofia Lopez
Eleos Life
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