Profit protection (Keyman)
This is a very important and highly underestimated
area. Most organisations have someone (or more than one person)
whose ability to work is critical to the financial well-being
of the company. How would your organisation cope if
it faced an uncertain future as a result of losing an important
employee?
Do you have an employee with specialist knowledge
or unique skills whose death or illness would affect the
company’s profitability?
In the case of an IT company, a specialised
programmer with unique skills may be at the root of a rapid
increase in business, allowing the company to be very optimistic
about the future plans of the organisation. But what if this
programmer were to die in an accident?
This event, although very distressing on a
personal level, would also have very serious implications
for the survival of the business, and would prompt the company
to ask a number of important questions:
- Who would carry out the rest of the programming
work?
- Would they find a replacement?
- How long would it take?
- How much would it cost?
- How would it affect the company's future
prospects
Companies like this (and yours) spend a huge
amount of money finding, recruiting and keeping key personnel. If
they spent a very small amount in addition (probably less
than 1% of remuneration), they would have the funds available
from a life assurance policy. This would enable them to 'buy
in' specialist expertise, to recruit a replacement, or to
provide financial breathing space whilst the company reassesses
its strategy and refocuses its remaining resources.
If you have a "keyperson" in your
organisation, the financial well-being of your company needs
to be insured, so that funds are available if he/she were
to die, or become ill in the longer term. It will not cost
you anywhere near as much as it did to recruit your keyperson
and can be fully written down as a trading expense.
Simply fill in a few details below for additional
information on how we can help in this situation, or feel
free to call us on 0207 407 8787.
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