If you look after the fixed assets in your business, for example premises, furniture, machinery, company cars and computers, why wouldn’t you insure the greatest assets in your business – your people? The smart money is on the business that has a strategy to mitigate the impact of losing a key person – the people risk.
How can key person insurance help you?
Key person insurance provides the funds to continue trading, to maintain profit, fund a replacement, pay off a bank loan or repay directors’ loan accounts.
Key people come in all shapes and sizes – ultimately, they are the people on whom the business is dependent in some way.
Take a moment to look inside your business and think about who you really rely on:
- Business owners who set the strategic direction and run the business
- A sales person or director who has a major impact or influence on profit
- Specialists whose skills are hard to replace
- People who hold relationships with third parties (banks, suppliers or key clients)
Questions to consider
- Who does your business rely on for contribution to turnover, client introductions, operations management?
- Would your business be affected if a key employee were taken ill or even worse?
- In view of the difficult economic climate, would you be able to retain clients / keep employees motivated / repay loans?
- Is any debt adequately covered should the worst happen?
- Could your families maintain their standard of living without support from the business?
- How do you retain control of your business in the event of a shareholder passing away?