You probably have your buildings, stock and vehicles insured. You might also have public liability and professional indemnity insurance.
But have you thought about what would happen to your business if a key employee or shareholder became seriously ill or even died? It’s an area that’s often overlooked, but you can protect your business against these unforeseen risks.
insure key people
You can probably identify a number of people who are key to your business success. These people could include directors, business partners and members of your staff.
The unexpected death or long-term illness of any of these people could threaten your business’s profits or put its long-term future at risk through:
- loss of profits
- recall of loans
- reduced capacity
- loss of key clients/contacts
- reduced practical know-how
So it makes sense to put some measures in place to minimise the impact of these risks.
Keyman insurance can help protect the business from the financial implications of the death or serious illness of a key employee.
Let us help you decide which options are most suitable for your business in the short and long term.
keep control of the business
If your Directors are the key shareholders in your business, what plans do you have in place if one of them becomes seriously ill or even dies?
In most cases, the shares of a deceased Director will pass into their estate. If the beneficiary doesn’t want to be involved in running the business, they could sell the shares, but the Directors may not want the shares going outside the company.
Shareholder or Partnership Protection Insurance can help you retain control and ownership of the business by purchasing the share of the business from the deceased shareholder’s family. The family in turn, receives a fair price for that share.
RSM Tenon Financial Services Limited is authorised and regulated by the Financial Services Authority. The content of this website is for general information only and is based on our understanding of current legislation and HMRC practice, which is subject to change.