Many businesses try to protect themselves against every eventuality by purchasing insurance for the buildings, fixtures and fittings, stock, vehicles and other financial liabilities however many forget to protect one of their most valuable assets – their key employees.
A key person within a business is an individual whose skills, knowledge, experience, and leadership are important to the continued financial success of the business. Examples could include, but are not limited to: sales directors, IT specialists, product developers, managing directors and heads of departments. The loss of an integral employee or director may result in reduced sales, loss of profits, wasted time, recruitment costs, training costs, withdrawal of loan or overdraft facilities, disruption of development plans and increased workloads for remaining staff.
Key Person Protection can provide a business with additional funds in the event of the death or serious illness of a key employee to enable it to maintain its profits and business operations during the time it takes to replace that person or repay outstanding debts such a mortgages, overdrafts or directors loan accounts.
There are many ways of structuring business protection depending on the needs and the budget of your business.