In most small and medium sized companies, the success of the business depends on just one or two key people. If you’ve worked with these people for many years it’s easy to underestimate just how valuable they are, how much they know about the company, how many extra hours they put in. But we can never be sure what’s around the corner. Sometimes, without warning, life throws the unthinkable at us. And that’s why business protection is so important. You can’t predict what will happen in the future, but you can make sure you have the right protection in place to help keep your business afloat if a key person becomes critically ill or passes away.
What is key person protection?
Put simply, it insures a business’ key people in case they pass away, become critically ill or find themselves unable to work due to long-term sickness. The success of almost all small and medium sized businesses depends on a few people who make a significant contribution. So making sure the business is covered in the event of their death or serious illness is a fundamental step. What would happen to your business if you or another key person were unable to work due to illness or injury?
Just some of the consequences of losing a key person:
- Sales could fall
- It could rock the confidence of your lender, suppliers, customers and your other employees
- Loans may be called in
- Suppliers may demand payment up front
- Without the leadership of you and/or your key person, your employees may decide it’s time to move on
Who are the key people?
The key person may be you, the business owner, or it could be the sales manager, whose contacts and relationships with customers make sure that sales stay on target and the business is profitable. Here’s some ideas of who the key people might be:
- Managing director
- Sales director
- Finance director
- Product designer
- Production manager
- Specialist staff
Contact the PIB specialist team on 01352 721300 so we can understand your business’ requirements and bespoke a solution that will ensure the future success and value of your company is protected.