There is a real risk that your business will lose an important member of staff to illness, injury or worse.
When it does, don’t foot the bill yourself.
A Key Person Insurance Policy puts money in your business bank account so you can keep trading.
You could get a substantial lump sum straight away or a regular monthly amount to replace lost income.
Why do you need a Key Person Insurance Policy?
Imagine the consequences of suddenly losing someone really important to your business.
It is estimated that 40% of businesses would stop trading in under one year after the death/illness of a key person.
What would the consequences be for your business and how would you feel about it?
- Loss of sales
- Inability to service customers
- Inability to complete projects
- Potential loss of custom
- More work for you
- Cost of temp staff
- Cost of training new staff
- Debts recalled / Funding withdrawn
If one of your company vehicles breaks down do you cover the cost of repairs yourself or claim on insurance?
If a tap leaks and floods your office do you pay to fix the damage or claim on insurance?
So if a crucial member of staff gets seriously ill or injured the financial consequences could be far greater so why cover the cost yourself?
Claim on insurance!
Avoid stress, keep your money in the bank and let the insurance company pick up the tab.
Key Person Insurance is a policy taken out by your business to cover important members of staff.
This can include anyone who makes a substantial contribution to the profitability or smooth running of your business such as a top performing sales person, someone with unique skills or talents or anyone whose absence would cause negative financial consequences.
If the Key Person is diagnosed with a critical illness, dies or is unable to work due to sickness or injury, money is paid to your business to replace lost income.
Money can be paid as a lump sum or a regular monthly income.
A lump sum could be substantial (tens or even hundreds of thousands) depending on the Key Person’s contribution to profits and a monthly amount could be sufficient to cover sick pay and the cost of replacement staff.
As a general rule-of-thumb, the premiums can be treated as a business expense.
When a claim is paid, the money is typically replacing lost income and is therefore subject to tax.
How do I set up Key Person Insurance?
With our help, the process is easy for you.
We can talk you through how the insurance works, what it does and what it doesn’t do.
A free business protection review can help you highlight who your key people are and how much cover you will need to avoid the financial consequences of losing them.
Following your free review we will prepare quotes for the relevant cover and present our recommendation to you.
Thereafter, a quick 20 minutes with each Key Person to go through standard medical questions is all it takes to put your cover in place.
We are ‘whole of market’ advisers with access to a wide selection of well-established, reputable mainstream insurance companies so we can make sure you receive first-class cover that meets your needs and your budget.
Send an enquiry or call us today to start the discussion about protecting your business from a potential catastrophe.