There are 5.4 million companies in the UK and more than 90% have less than ten employees. That is a large chunk of businesses within which success and failure is resting on a limited number of people. If you own or work in a small business, you’ll probably recognise the increased workload and mad rush when someone is off unexpectedly for a few days.
Now, imagine if a key person become unable to work for an extended period due to illness or an accident. Or worse still, if they passed away. The business would likely face significant financial hardship.
In previous blogs we have discussed how key person insurance could benefit you in terms of investment opportunities and risk management, but it can also play a large part in legacy planning too.
Key person insurance provides your business with the means to continue trading after the loss of a key person, or, if you wished, for the business to be wound down in an orderly fashion.
When you own a business, it can be stressful to think about what might happen and so often we do nothing. Key person insurance can provide you with the peace of mind that your business will live on, supported by a financial safety net allowing it the breathing room to recover from the loss. It ensures consistency, restores confidence and helps your business prepare for its next steps without a loss in service to your clients.
Taking out insurance policies to protect loved ones if the worst should happen is now standard practice. Why can’t this work for business? If you ask yourself ‘Where would we be without X?’ and the answer is unclear and of concern, then taking out a key person insurance policy should be next on your to-do list.
To discuss key person insurance further please don’t hesitate in contacting us. Call us on 01639 262222 or click here to send us an email.