Almost every business will insure all of its inanimate objects; the building, the computers, the phones. However disruptive losing access to these things is, they are all easily replaceable.
The one thing business owners forget to consider is their biggest asset: their people. Every business, no matter how big or small has at least one key person who, without them, the company would start to fall apart very quickly.
Consider your own business – who is the leader? Who is the visionary? Who holds all the 3rd party relationships? Who has the specialist skill set? Who knows the business inside out? Who brings in the most profit? Who, when they go on holiday, everyone groans as they know the next 2 weeks are going to be tough?
If this person or people are no longer around, then this is going to cause a knock-on effect. Firstly, you’ll have the initial shock of what to do. Then this will turn into panic of realising just how much this person or people were needed, and just how much they did. Secondly, you’ll try to spread out their workload amongst others in the company, usually between 3-4 people, which will demotivate your staff. Thirdly, you will see your revenue and profits start to take a dive, as there will be delays in projects, orders not met, services at sub-par standard, and that’s when your competition will start to take your customers, because believe me, they won’t be keeping quiet about your newfound spiral. Lastly, any creditors will start to ask for their money back, as they’ll feel their money is no longer safe in your company. All the hard work you’ve put into this business, sometimes for entire lifetimes, could go up in smoke – 6 out of 10 business close once they lose a key person*.
Reading between the lines, you’ve already guessed that there is a solution, and it’s called Key Person Cover. As soon as this person or people are no longer around, the insurance pay outs a lump sum for the company to do with as they please. You now have the funds to recruit, train and pay for a quick replacement. You have the funds to pay off any debt. You have the funds to bolster any profits so that the company can keep the growth plan it had. You see, Key Person Cover is not a just tool for risk mitigation, it also allows the company the funds to carry on the growth plan it started out with, and maybe even accelerate the growth as you can now pay for a top end replacement candidate who may have a fresh take on your company.
Protect your profits. Protect your growth. Protect your future.
To find out more about how Vista can help your business, register to join our webinar with our Head of Vista Evolve, Sam Marriott about business survival insurance here
*Legal and General State of the Nation Report 2021
