Business Protection Benefits - How would the loss of a Key Person affect your business?
- Would the business have funds to purchase the shareholding of a deceased shareholder?
- Most business will insure their tangible assets such as equipment, machine and property. However how many businesses insure their key assets - their Key Staff?
Keyman Protection Insurance - In the event of the death of a Key Person, the insurer will pay over benefits directly to the business. The business can then use the benefits to fulfil their financial needs whilst recruiting a replacement or whilst undergoing reorganisation. Shareholder / Partnership Protection - In the event of the loss of a Shareholder/Partner, the insurer will provide the remaining shareholders with funds to purchase any available shares. This would allow the business to continue without further disruption. Business Loan Protection - In the event of a loss of a key person or a named guarantor, the insurer will provide the business with funds to repay any borrowing. This will protect the business' existing loans and its ability to secure any new borrowing in the future. Executive Income Protection - If Executives are unable to work due to illness or injury, the insurer will pay the benefits to protect against the loss of income. Being Executive Income Protection, the cover is more comprehensive than individual income protection. These types of insurances are often overlooked for businesses, but are often fundamental to the survival of a company if a Key Staff member is taken long term ill or dies. Keyman and Shareholder / Partnership Protection Insurance can be set up to protect the Business, Directors / Partners from the affects of prolonged illness or death of staff that are central to the prosperity of the Company. The most important steps are that a business reviews its existing provisions to ensure that there is adequate cover in place so that in the event that one of these eventualities occurs to a Key Staff member, there is adequate provision in place. Insurance policies can then, if necessary, be arranged and structured correctly through Estate Planning, Shareholders Agreements, Cross Option Agreements and Trust to ensure that the business receives the monies required to withstand this type of eventuality. Encompass Financial Solutions are experienced in the implementation of this type of insurance for further information either call 08450 535304 or visit their website http://www.encompassfinancialsolutions.com Managed Risk Solutions Ltd is an introducer to Encompass Financial Solutions Ltd which is an appointed representative of Personal Touch Financial Services Limited, which is authorised and regulated by the Financial Services Authority. |
