Key Personnel Protection – who is it for?
Key Personnel Protection is often deemed as something designed for big corporations with numerous board members, succession planning strategies and professional trustees. Yet, due to resources they have available to them, they have greater chances of surviving personnel crises than small and medium enterprises. Even though in most SMEs a Key Person is often 20%, 50% and sometimes even 100% of the staff.
Think about who is the most important person in your business. How their absence can influence its performance?
If you’d rather protect yourself against such consequences, contact us on 01708 504455 for more information.
Planning is key to any business’ future and we make plans about investments, acquisitions and spending. However, to make these things happen, we need people. Unfortunately, people are the asset that is often overlooked when assessing businesses performance. This does sound unbelievable, yet we have found statistics confirming this trend. Scottish Widow’s report reveals that 55% of businesses would cease trading if they lost one or more key people. At the same time just one in five companies have insurance in place to ensure business’ survival in such eventuality.
It’s an alarming trend, especially when modern businesses are rarely free from liabilities – getting funds for development is tricky and not all businesses can rely on investors to help them out, raising capital often includes risks like business loans and overdrafts, even mortgages. According to the report around 34% enterprises with liabilities have to back-up plans drawn up in case they lose a person key to business’ performance.
Another interesting comparison is 68% vs 3%. The first number represents business to which delivering on obligations to clients is key. The latter tells us that only 1 in a 100 companies have “insuring their business against death of a key person” on their top ten priorities list.
If want to check how having Key Personnel Protection in place could benefit your business, contact us on 01708 504455. Let’s talk about how we can be of assistance.