Just as you or your spouse may insure your lives to protect the family, your business may want to insure key employees. These may be directors or other staff, but look at colleagues as well as your employees and consider their contributions to your business.
- How easy would it be to replace your European sales manager who has developed so many personal contacts?
- And what about your research experts, whose contributions may be irreplaceable?
- As the owners of the business, you probably work long hours. How many employees would be needed to replace one of you?
- If a key person is gone, is your bank manager likely to seek to call in loans or overdraft facilities?
- If you were to lose a key employee (and this may include yourself) would your business survive? Even if it would how much would it lose before a replacement is properly in place, how much would it cost to find that person?
Your business can insure key employees against the risks of death and incapacity so that, despite the personal tragedy, money is injected into the business at a crucial time.