Do you own a business? Have you identified the person or people who have directly influenced the profitable growth you are enjoying right now? If your answer is yes, then you need to take Keyman insurance for them for the safety of your business.
Most business owners ensure they get insurance for their property, legal cost insurance, professional indemnity insurance and public liability insurance. Very few remember to get Keyman insurance for the personnel responsible for steering their business to success since they believe no man is indispensable.
For any business, when this person who is referred to as the ‘Keyman’ for the business dies, the business enterprise ends up feeling the negative shock.
What is Keyman Insurance?
In any business, there are some few individuals at different levels of the business that are responsible for the success of the company. It may be an aggressive salesman who has attracted and retained a large number of clients in the company. The salesman might be responsible for the growth of confidence by the clients for the company. It may be the chief executive officer and his good leadership and managerial skills or even one of the directors on the board who owns a large percentage of the shares in the company. In case any of these key members falls ill or dies most likely the profits will drop and if the business is not cushioned for this effect, it might shut down.
Keyman insurance helps to counteract this effect by providing a monetary compensation for any losses made by the company during the period the company loses its key member. Keyman insurance can guarantee a stable income flow during this period when the person is not in office.
In case the company loses its director, it may provide the money to buy out the shares so that the company can continue to run as usual and avoid making losses.
Do I really need to take Keyman insurance for my business especially if I have a health insurance?
It is important for any business to take Keyman insurance independent of the business size. Most small business owners assume that since their business is small and they have only employed a few people in case of illness or death the company would not make huge losses.
The truth is, at least one for every ten workers in any business is likely to suffer from a terminal illness that may lead to premature death before one's retirement age. An accident can also occur which may make one to lose one of the key staff members prematurely. A health insurance policy will only cover the staff member at the hospital but not the business. If the business is not prepared for the effects, most likely it will undergo recession.
Where do I get Keyman insurance for my business?
Before taking Keyman insurance, it is prudent to seek the advice of an independent financial adviser. The independent financial adviser will advise you on the process of getting Keyman insurance in relation to your business and even propose the best providers of this insurance.
To speak to a key man insurance broker with an exceptional approach to customer service, speak to our team of expert advisors. We will tailor a key man insurance policy to meet the specific needs of your business. Visit Keyman - Insurance