Protecting its key people should be an integral part of any small trader’s business plan. Many small businesses already protect a lot of the important things that keep them running smoothly, such as property, vehicles, plant and stock. So it makes sense to insure your most valuable assets: you and any staff you may employ.
A key person could be an employee whose knowledge and expertise are vital to the success of the business. Additionally, you yourself will be key to its continuing success.
Key person protection will provide funds to keep the business operating if you or any employee who is key to its success were to die, or be diagnosed with a critical illness that stops you or them from making the usual contribution to the firm’s day-to-day operations. For example, the funds could assist in finding, training and paying a suitable replacement for a key employee, or make up for lost income streams while the replacement is being sourced.
Losing a key person could be disastrous for the long-term survival of your business, and any continuing income you may want it to provide for your dependants. The loss could leave your business without some vital skills and knowledge and make it more vulnerable to the following potential problems:
Key person cover will give your business some welcome breathing space during what will be an unstable and uncertain time. It will provide you or your dependants with the funds to make sure: