Protecting the profits of your business
Would your business be at risk if you or a key member of your team was unable to work due to serious illness?
In recent research* 53% of businesses stated they would cease trading within one year if they lost a key member of staff to illness, injury or death (this increased to 67% for new businesses). 73% of sole traders would cease to trade immediately.
In most businesses, particularly smaller ones, the real value is in the people that run it. Although business owners will insure the buildings, stock and vehicles they will often leave their most valuable assets unprotected – the loss of a key member of staff.
Key Person Insurance provides the business with a cash lump sum if the individual covered is diagnosed with a critical illness or serious injury. This can be used to bring in replacement staff or simply provide the cash flow that their loss has cost you - it's up to you.*Legal and General 2017