Business success can be almost measured by the quality of its staff. Good quality staff or personnel within a business can be its foundation and fundamental to its smooth and effective running. Regardless of what changes effect your business on a day to day basis this fact rarely will.
When looking at small businesses this statement is never more true. The United Kingdom has over 4 million small businesses that have fewer that five people working within. It is also a fact that of all the businesses in the UK no fewer than 95% have less than 10 people working in them. These businesses should more than any be thinking of keyman insurance and more so key-man life insurance policies.
You will be only too aware of exactly who constitute your own key personnel- the ones who are driving your business forward; the ones, without whom, you would not only lose sales or profits but you could even risk losing the business itself.
Keyman insurance is imperative for people such as this. Keyman insurance can prevent the nightmare scenario of the collapse of your business because of the prolonged absence or even, though we might not want to contemplate it, the death of someone who is central to our success and well-being.
Keyman insurance can provide you with the necessary insurance cover to be able to financially compensate for the death or disability of your essential personnel. This means that you are able to keep the business running whilst you look for, then possibly train up, a replacement.
Keyman can provide you with much more than just individual employee cover. If a partner or stakeholder dies, you may find yourself faced with the option of either having to buy the remainder of your business from the family members or having to sell the company. Just because the shareholder was committed to the company does not mean that his or her family necessarily feels the same way. Few people would be independently capable of having that sort of capital at their disposal, which is where Keyman can help. We can help provide the capital to keep you in business, regardless of extraneous circumstances. That alone should be enough to alleviate some of the pressure of running your business.
Also the death of a guarantor can be equally drastic. If you find yourself suddenly having to pay of a large business loan when you least expect it, Keyman can provide a policy which will help to rectify an otherwise impossible situation.
It is clear to see that all key-man insurance is, is life insurance the difference is the reason you arrange it and essentially where the funds actually go. In the typical life insurance route the funds would go to the beneficiaries, in a keyman scenario the funds are discharged to the company for them to do with what they want. If you are looking on the internet you will find that just about all life companies have some sort of provision for Keyman or key person insurance. In some cases you might find that you can even claim some tax relief on the contributions that are made to the plan but this should be checked with your professional advisers first as there are ramifications to doing this.
So in summary protecting your business should be one of the most important things on your mind whether you are a sole trader a partnership or even and Ltd company arranging some keyman insurance will make sure that catastrophic does not effect the business financially.
Keyman insurance is a must for any company. Make sure your company isn't impeeded by having your employees covered with good Key Man Life insurance
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