If you look around your company or think of the key people that work for you, there are some that you simply cannot do without. Several will have expertise or experience like no one else. Others will have the contacts or reputation that make them so successful.
However, what would happen if these key individuals were to become critically ill or even pass away. Their loss would not only be felt on a personal level but it could also have a catastrophic impact on your business as its opportunity to succeed.
It may seem callous or morbid to think of such a thing, but when your own family’s well being and the families of all your employees is at risk, it is vital to be prepared for the worst.
That is why Friendly Finance Keyman Insurance is so important to businesses of all sizes.
Keyman Insurance is a vital policy which provides the financial support required for your business to overcome the loss of any key individual and continue to support those that are left behind.
- Making the Most of a Keyperson Insurance Policy:
With the lump sum provided from a key man insurance policy, it is possible to maintain the financial consistency required to overcome the loss of a key individual and provide lasting stability for the future.
The money provided from such a policy can be used to purchase shares or ownership rights from the deceased’s family to ensure the consistent management of the organisation through times of change. Alternatively, such a capital injection can provide compensation against loss of income or a reduction in production due to the loss. This will ensure the company can see its way through even when times get tough.
Funds will also be required to adjust the structure of the organisation to compensate for these developments. This could include retraining existing staff to take on new roles or, could involve recruiting new staff to ensure the company is able to continue.
While the company many not be able to afford such an increase in costs, especially at such a difficult time, the benefits from keyperson insurance can ensure there is no delay.
The proceeds from this type of insurance cover can also provide any new employees with the breathing space to get up to speed before the demands for success set in. Though the person will still be missed, key person insurance can ensure that the company is able to continue.
When times are tough, taking on another regular financial commitment may seem challenging. But if you were to lose one of your key workers in such an economic climate, would your company be able to fund their replacement?
No one wants to think about loosing key personnel to illness or death. However, it is essential that these hard decisions are taken to protect the company and all those that depend on it.
Simply by taking out a Keyman Insurance Policy to cover the major contributors to your organisation, you can ensure that your company has the facilities in place to support its continued success and face the challenges that lay ahead.
Helpful resources: http://en.wikipedia.org/wiki/Key_person_insurance