Key Person Insurance
The objective of key person insurance is to compensate a business for loss of profits on the death, critical illness, or disability as a result of sickness or accident of an employee.
As a business owner you will have considered disaster recovery and contingency planning; but have you thought about how the loss of a particular person would impact on the profitability of the company?
The financial impact may include: –
- Loss of new business secured by the key person
- Loss of access to loan finance dependent on the key person
- Necessity to suspend or stop production of certain products on the loss of the key person
- The cost of recruiting and / or training a replacement
This is likely to include directors, senior managers, research and development specialists and sales staff.
Key person insurance is designed to protect your business against loss of profits. As with any insurance it is important that the proceeds are in the right hands at the right time. It is the business that will suffer loss and needs to be insured against it.
Central Financial Services offers a complete one stop solution for your Business Insurance needs.
These needs can be far more than you had realised and taking professional advice can ensure you make an informed decision about your business protection needs.
You wouldn’t drive your car without having insurance so why risk your business!