Key Person

As a company, you insure buildings, cars and equipment against unforseen disasters. However, do you insure your business in the event of key staff becoming seriously ill or worse still, death?

Draw up a list of your Key People, who, very broadly, are those whose skills are such that no one else could step into the breach should they die suddenly of a heart attack or the like. In most companies the Directors are Key People, as are the star salesmen, business drivers, and possibly certain technical staff.

Ask yourself what sort of damage their loss would entail. This can range from the catastrophic (in the event of the death of an owner director this can result in the calling in of all debts, bank overdrafts etc and subsequent failure of the firm) to the difficult (the death of the top salesman may cause a new business famine and subsequent cash flow difficulties) to the merely expensively inconvenient (hiring a consultant locum at £500 a day for several months while a new person is recruited).

If you consider that you have a potential problem then you can insure against it using Keyperson policies. We can help conduct an audit for you and assess what sort of coverage you might need.