Insure your business now and don’t get caught out
Keyman insurance and shareholder protection are two of the most important insurance policies for businesses, but ones that often get overlooked. Most businesses will as a matter of course, organise public liability insurance, buildings and contents and car insurance. However, what would happen, if the business was to lose one of the key employees? Someone who is crucial to the success of the business?
Keyman insurance is designed to financially protect a business, should it lose a key member of staff to either serious illness or death. It can provide financial help to cover the costs of temporary staff, recruitment, loss of profits or to provide a cash injection.
Shareholder protection insurance protects each of a company’s shareholders. On the death or diagnosis of a critical illness of a shareholder, the other shareholders receive a cash lump sum, which can then be used to buy the affected shareholder’s shares. This ensures that the shareholder’s family receive their part of the inheritance as quickly as possible – and there is minimal disruption for the company.
Does shareholder protection have a place in your business? What would happen to your business if you didn’t have it? Some businesses simply say that if a partner dies their share should pass straight to the remaining partners but that is not fair to the deceased partners’ estate. And besides, who would want to work hard to build a business up that leaves nothing to their estate?