Protect the health of your organisation — design and implement continuity plans that protect your business from major life and personnel risks.
Your key personnel help keep your business at the top of its game. However, if one of these key people became critically ill or passed away there may be concerns over business interruption.
It may be uncomfortable to consider the worst happening to your close colleagues:
- How would your business cope if certain key people became critically ill or passed away?
- What would happen if your business partner passed away, and their shares were inherited by their family? Would they sell them to you? Could you afford to purchase them?
- What knowledge, experience and expertise would be lost? What would be the effects?
Planning for these eventualities often requires a two-pronged approach:
Key person insurance
Almost all businesses, from partnerships to multinational organisations, have people who are essential to its ongoing success. This could be each member of a Partnership - recognising that without the other their business cannot continue trading, or a global business - insuring against the loss of their CEO or Sales Director.
Key person insurance can help to protect your business by providing a cash sum if one of these vital people dies or is unable to work due to serious illness.
Why is it important?
Losing a critical member of your team could have serious impacts on your business, which might lead to:
- A fall in profits
- The loss of customers or contacts
- A business-critical skill gap, meaning you can’t continue trading
- Shareholder protection is designed to ensure business continuity in the event of the death of a shareholder.
- Insurance can be taken out by fellow shareholders or the company.
- Policy proceeds are used to help buy the share of the business owned by a shareholder who has passed away.