According to one of the UK’s leading protection companies, 91% of small and medium-sized businesses have four owners or less and 95% have fewer than ten employees.
This puts these businesses at a much higher risk of failure, in the event one of their key employees becomes seriously ill or dies.
Following the introduction of auto enrolment into workplace pension schemes, business owners and managers have taken more time to review employee benefits in recent years. However, they often overlook the security of the company itself, which is fundamental to everything else.
Business protection insurance is available for limited companies, partnerships (including limited liability partnerships), sole traders and key employees.
Safeguarding your company and its ongoing profitability by insuring against illness, disability and death should be an essential part of your financial planning. It will ensure the firm can continue, with minimal disruption, following the loss of a vital member of the team.
We can implement business protection as part of your personal financial planning strategy. When establishing your needs, it is essential to review the impact losing a key individual would have on your business, by considering the following questions:
- What would happen if your top sales person was to suffer a critical illness or die? What impact would it have on revenue?
- Would the business have sufficient funds to survive until a replacement was found and trained?
- What would happen if one of the partners or shareholders suffered a critical illness or died? Would colleagues have enough money to buy their shares?
Expect the unexpected
These might be tough questions to contemplate when everyone is fit and healthy, but take a moment to reflect on the implications for your business if they are not addressed.
If the Coronavirus epidemic has taught us anything, it is that crisis situations can develop very quickly and it is essential to plan for every conceivable scenario. These are very real risks that could shape the future of your business and its profitability. Don’t be caught out!
To find out more about the benefits of business protection, contact me on (01246) 298181 or email: email@example.com