Keyman Insurance: As an entrepreneur, you can have liability insurance and make sure your buildings, inventory, and vehicles. You can even have professional liability insurance and legal expenses insurance. That is all? What about your other primary assets, your key employees?
Key employees are at the heart of every business, but no less than 3.9 million small businesses, often family businesses, with up to 4 employees. The long-term absence of a serious illness or even death can be paralyzed for some of these companies. The risks are the same for limited liability companies, partnerships, and exclusive traders.
In this context, Keyman Insurance is a must. Keyman Insurance is a set of insurance plans designed to protect the company from the effects of a prolonged illness or even the death of employees critical to prospering the business. Insurance can’t replace people, but it can provide money to save time and cover the costs of temporary agency workers, hiring, loss of income or cash.
The insurance can be divided into 4 categories insurance, which helps your company to recover for a longer period of time if your key people can’t work or make a replacement, insurance for the protection of benefits, insurance for protection of the shareholders or interests of the company and insurance for any person involved in the guarantee of corporate loans or banking facilities.
Keyman Insurance on those who are central to your business
Who are your key people? You control, create and conduct your business. The people without whom your business would lose sales and profits or even be shaken by the fundamental capacity of your business. Look at the directors, partners, owners and beyond. Consider the roles of senior executives in sales, engineering, and operations. The roles are changing in every business, but the candidates will surely turn to you.
Make sure these people provide the extra money needed to hire temporary workers or recruit and train replacement workers.
Keyman Insurance to protect your Profits
The loss of key people goes far beyond labor costs and the cost of replacement. Because they are fundamental to prosper companies, their final balance will be lost. You can also make sure of the loss of profit!
Keyman Insurance to protect Shareholders or Partners
This is insurance for the protection of interests in case of prolonged illness or death. Families may wish to sell their shares in the company, but the remaining members of the company may not want these shares to be held by newcomers. Keyman insurance policies can be implemented to provide the necessary funds to purchase the shares of the original shareholders or their equity.
Keyman Insurance ensuring those who provide personal guarantees
When a company obtains a loan or obtains bank financing, the lender is likely to demand a personal guarantee or a personal property rate. This is especially true for small and new businesses. So, what happens if those guarantors become seriously ill or die? The lenders may be able to take advantage of the loan. What happens then? Once again, Keyman Insurance is the answer. Insurance can be structured to pay off the loan, freeing the business and the sponsor’s family of the greatest concern.
Most of the leading insurance companies offer Keyman insurance as a development of their life and health insurance interests. They have all the necessary documentation to perform the required coverage and to make sure that the meter is kept under control.
Can your company afford to ignore Keyman Insurance? You will be a brave or foolish man who says NO!