More than 80% of small businesses in the UK do not have Key Person Insurance. Not only does this service provide financial cover and security should an important employee fall ill, but it can act as a great incentive for investors if you are looking to grow the business.
If the talent, expertise or relationships of you, or a specific person in your team, is critical to your business’ success and ability to operate, it can be seen as a high risk to potential investors, as it is dependent on the health and wellbeing of said person. Especially if you are the sole owner and operator of the business.
Having Key Person Insurance allows you to be completely prepared when this issue brings up some resistance from investors. It can suppress their anxieties and assure them, that should the worst happen, not only will their investment be protected but the company can stay afloat via this financial safety net.
Whether the payment from this insurance service is used to subsidies a loss in profit or in the recruitment/training of someone else to fill the position, it offers a buffer period that allows the company time to recover from the loss.
If you would like to discuss Key Person Insurance further, please contact one of the First Financial Solutions team by calling 01639 262222 or email Chris by clicking here.