Key Person Insurance
Most businesses have an individual who is key to the success and profitability of the business, a ‘key person’. The death, illness or disability of a key person can have a negative financial impact on your business.What is Key Person Protection?
Businesses are aware that their long-term success or failure will ultimately depend upon the ability and value of their employees. Businesses today protect their buildings and equipment quite easily by calculating the financial implications and potential loss of profits from the damage of these assets. What many businesses overlook or ignore is the actual value of its employees
The success of almost all small and medium sized businesses is dependent on a few people who make a significant contribution. These key people can include the owners, senior directors, sales people, production managers, research and development staff or other people with specialist skills or knowledge.
Whatever the key person does, their loss could have disastrous consequences for the business. Some of the problems the business may face are:
- Loss of profits
- The need to recruit or train a replacement.
- Loss of important personal or business contacts.
- Difficulties in meeting existing loan repayments.
- Loss of confidence from suppliers and customers.
- Difficulties in raising new finance for new developments.
- Loss of detailed knowledge of the businesses processes and systems.
- Having to repay a loan the key person has made to the business.
- Loss of goodwill.
Having the right protection in place can help to ease all of these problems. The MSV Key Person Protection Plan is there to provide protection against the financial loss it may suffer from losing a ‘key’ employee due to death or becoming disabled.
It can’t stop the unthinkable from happening, but it can make dealing with the consequences a little easier.
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