Keyman or Key Person Cover Explained
Posted on March 5th, 2011 in All Posts, Business Protection, Key Person Cover. Most businesses understand the need to manage the risks they face every day. They insure their premises, equipment and stock against fire, flood and theft. They insure their vehicles. But many don’t stop to think what would happen if they lost their most important asset – their people.The fact is many small and medium-sized businesses rely on certain key people. It could be the sales manager, whose contacts and relationships with customers make sure that sales remain on target and the business is profitable. Or it could be a designer responsible for the development of new products. Without these people the business could suffer serious financial loss, or even have to stop trading altogether.
Whatever the key person does, their loss could have disastrous consequences for the business. Some of the problems the business may face are:
Loss of Profit
The need to Recruit or train a replacement.
loss of important personal or business contacts
difficulties in meeting existing loan repayments
loss of confidence from suppliers and customers
difficulties in raising new finance for new developments
loss of detailed knowledge of the businesses processes and systems
having to repay a loan the key person has made to the business
loss of goodwill.
To find more out about how business protection insurance and keyman insurance can protect your business ring or enquire using the short form.
Related posts:
