Key Man Protection – Keeping Your Business Safe
If you own a small business, you’ll know how important some of your staff can be. From the woman in sales who always gets the best leads, to the man in the marketing team who knows all the passwords to your social media accounts. You may come to depend and rely on these people, and while you may feel that if they wanted to leave you’d had plenty of time to replace them, life isn’t always that straightforward. An accident or an illness can suddenly leave you floundering without a member of staff you always knew was essential.
Why You Need Key Man Insurance
Key man insurance is something that many small businesses are unaware of, but it can be essential to give you piece of mind. If you have an essential member of staff, whether they’re your Chief Technology Officer or simply someone who has all the building keys and access codes, then key man insurance could save you a lot of sleepless nights. This form of insurance is similar to personal life insurance, only instead of paying out to the family it pays out to the business instead.
What Does It Cover?
The first cost that many bosses are concerned about is covering the person’s work if they are on long-term sick leave. This insurance not only covers those initial costs, but if the employee has to leave the company permanently, then it also finances the cost of recruiting and training a replacement. The insurance also covers lost income, whether this is from the cancellation of a project that the person was working on, or loss of sales.
It can also cover the loss of specialised skills and knowledge, for example if you are a jeweller with a single staff member who specialises in watches. If you look at your past year and find that 30% of your income is solely from customers bringing in watches to be repaired or serviced, that could be a hefty loss to your business.