As every businessperson knows, the cornerstone of any good business is strong financial planning. With the right cover, your business remains protected, if the unexpected should occur.
For many companies, the people that work for them are their most valuable assets. Most businesses have one or more senior personnel whose experience, skill and industry knowledge are vital to the ongoing success of the business. Yet while almost all firms insure their premises, equipment and goods against fire, theft and flood, many do not insure themselves against the loss of key people that keep the company running successfully.
When you lose a key member of staff through death or illness, whether it’s a director, a senior manager or your best sales person, you could stand to lose all this as well:
With a Key Person insurance policy, if you lose one of your most important members of staff, you’ll get a lump sum that can protect you against any disruption to the business, resulting from a fall in profit or productivity. Alternatively, it could be used to pay off any unprotected loans.
The loss of a business partner or shareholder can have serious implications for any company. In the case of the death of a business partner, as well as losing a key contributor to the management of the organisation, shares in the company can pass on to their immediate family, which can pose questions for the business going forward:
Partnership Protection Insurance protects both the company and the new shareholders in the event of the death of a partner.
It’s a good idea get legal and financial advice before taking out Partnership Protection Insurance as there may be circumstances where this arrangement may not be suitable.
Financial Planning Standards Board
Professional Insurance Brokers Association
Certified Financial Planner