Is your business adequately protected?

I am almost certain that most respectable business owners protect their own tangible assets such as their car and their home, and for their business, the buildings, machinery and vehicles will all be insured. But they may have key individuals within the business with skills that are absolutely vital to the success of your business that they do NOT insure.

If you, or one of your key staff died, or was diagnosed with a critical illness, the financial impact on the business could be very serious! and that is why planning to help protect the business from the financial consequences of losing key people is absolutely vital. What impact would their death have on the business? Reduced sales or turnover? Would you have difficulty in recruiting or training a replacement? Could your business afford to repay its creditors and keep trading? Could the business survive in what, for many businesses, is the harshest trading environment for many years?

There are so many solutions available in the market that can protect a business, the question is which one is appropriate to your particular circumstances? which insurance company should we use? which is the most cost effective? which contract covers the most critical illnesses? how much cover do we need? who should we insure? how much will this cost me? are the premiums to be treated as a business expense? will the benefits be taxable? what term should we select? what IS a key person? should the benefits be paid as a lump sum? can I protect a key individuals income?

This is an area that has become very topical, and therefore if you, or any of your associates and contacts believe that this is something that should be reviewed then please pass on our details, email me on shane@kirkellainvestments.co.uk or give me a call on 01482 658989 to discuss your specific circumstances in more depth.