If you own a business, it’s likely you’ve already considered all the types of insurance available to you. You’ve got liability insurance, motor vehicle insurance, insurance of your property and contents, and probably even Business Expenses Insurance in case you’re unable to work. But have you ever thought about insuring your most important staff members?
Have you ever thought about what would happen to your business if your business partner, managers or lead staff were unable to work because of illness, injury, or even death?
While you’re dealing with the devastation of losing a staff member and probably a friend, it’s important to know your business will also be protected – and that’s where Keyman Insurance comes in.
Keyman Insurance covers your business if you lose an important staff member for a long period of time. Your business owns the policy, which covers each of the key people in your business, including yourself.
The policy will provide a fixed monetary pay out should one of your business’s key people be unable to work.
Keyman Insurance covers four main areas susceptible to losses if you were to lose a key member of staff.
When a key member of staff is lost from the business, you may need to re-hire for their position. You would spend both time and money training the new employee up to the right standard. Keyman Insurance will help cover the costs of doing this to reduce the impact on your business.
Chances are you rely on your key members of staff for your business’s productivity and profitability. Whether they’re closing sales or managing projects that have to be stalled or cancelled, Keyman Insurance will protect your business from a loss of profits as a result of their absence.
Often your business partners will share your bank loans and guarantees, so if they were suddenly unable to share the load of repayments, you could be left significantly out of pocket or in debt. The funds from your Keyman Insurance will go a long way to keep your head above water when it comes to bank payments and loans.
If a shareholder, partner or interested party wants to take over the affected person’s holdings in the business, Keyman Insurance will help fund this transaction and ensure there are no losses in value.
Keyman Insurance is a policy to consider buying along with all your other forms of protection when starting your business. If you don’t yet have Keyman policies in place, there’s no better time than now to get things going – you never know when your business may be hit.
Every business’s needs are different when it comes to working out how much each policy should be worth. You will need to consider the extent of your coverage, including whom exactly to cover, including any business partners or key staff. It can be tricky coming to an appropriate policy, so be sure to seek further advice from an insurance professional.
Keyman Insurance can be surprisingly affordable. The cost will depend on the type of cover required, including the events you want to insure as well as on the individual being insured. To obtain a quote and find out exactly how much it will cost, contact our Wealth Smart advisers today.