Most small businesses are heavily reliant on certain key individuals within that organisation. If one person is prevented from working, either due to a serious illness or death, the impact on company resources and future profitability can be severe, even devastating. It is vital that all companies consider and remove this risk by protecting themselves against such an eventuality with the appropriate insurance.
The detrimental effect of serious illness or death among key personnel also applies to larger businesses even though they often have the benefit of some job overlap with their colleagues.
So what action can be taken to cushion the impact of such an eventuality?
AEON has advisers who have considerable expertise in this area of financial planning. As part of that planning process we will consider the following questions:
Once we know the answers to these and other questions we can formulate a plan to protect the business from such an event. We normally provide a detailed report to a business explaining how such a plan would work, how much it would cost, the tax implications and the necessary board resolutions that should be completed. When appropriate, we will also liaise with your accountants.
This is a complex area of financial planning and there are many alternative plans that can be used providing different types of protection. Making a mistake in this area could mean the difference between a company failing or continuing to trade.
If you are keen to minimise these types of risk to your business, we would encourage you to contact us at AEON. We have considerable knowledge of key person insurance and will ensure your company’s individual financial security is as comprehensive as you can reasonably afford to suit the needs of your business.