Business continuity is crucial to the smooth operation of all companies, but unexpected events can be real setbacks for smaller businesses. In order to ensure that you can continue to meet the needs of your customers, while satisfying the demands of shareholders, employees and the bank manager, it is useful to have some kind of safety net in place.
Partnership and Shareholder protection
Partners and major shareholders are crucial to many businesses and their situation and their requirements are different to those of employees.
They have a major stake in the company and if something happens to them it can have a major impact on the business. There are two issues to consider in the event of unexpected death or illness to ensure that the business can continue to run smoothly – can the business afford to buy the partnership or shares and will the affected partner’s family be provided for?
Key Person Insurance
Some employees play a key role because of their skill or knowledge and the loss of their services due to unexpected death or critical illness can hit a business hard.
You can ease the painful transition with a key-person insurance policy, which can allow you to cover expenses such as the cost of a temporary stand-in or the recruitment costs involved in finding a permanent replacement.