Key Person Cover: Is your business protected?
Almost all businesses contain Key Persons that are of paramount importance to the continuing success of the enterprise. This may be because they win new business or design new products or manage key existing client relationships. Or perhaps they perform non-revenue generating but essential function – such as a compliance manager who may be expensive to replace.
Why does a business need Key Person Cover?
The illness or death of a key person can present challenges to profitability. Businesses could lose big accounts, fail to service their debt or face expensive recruitment costs. If they are a regulated business and the individual performs formal oversight functions, they could potentially lose their ability to trade.
Peace of mind
It is prudent for a businesses to insure against this risk. Cover is available against a key person’s absence through ill health, critical illness event or death. The insured amount required can be calculated with the help of a financial adviser with regards to the above issues.
Many of the associated premiums through the company are tax efficient as business expenses. This reduces the real cost. There is no greater necessity than ensuring the survival of the business against these sadly all too common occurrences.
For more advice or information, please get in touch with a member of our team.