Just like families and individuals, businesses can face various financial risk associated with the loss of business owners or staff. Unforeseen share purchase costs, debt funding and lost skills can all place financial pressure on a business.

Let’s start with business partnerships. What would happen following the permanent loss of a business partner in your company? Maybe a sudden death for instance. Would you stay in business with the lost shareholders family or would the estate be looking to you for a buyout of company shares? In most instances a share purchase is expected. What would it cost to fund the purchase of shares in your business and how would you fund this sudden expense? There are a number of insurance benefits that can help fund the purchase of shares but for this to work the ownership needs to be carefully considered and the partnership supported by a strong agreement making it crystal clear what the shareholders have agreed to.

How about the sudden and unexpected loss of key people in your business? This can result in the loss of skills, knowledge and relationships. Would your business continue unaffected or would you need to source the necessary skills from elsewhere? Can you afford to fund new skills? Will you source them locally or offshore? How long would it take to find the right person, get them in the role, introduce them to your clients? While this is going on, what happens to the company revenue? With a key person down, is it likely the revenue will drop? Key Person Insurance addresses these risks. The right portfolio can help your business survive the negative impact of losing key individuals, fund their replacement and replace lost revenue.

Ask yourself this. Without insurance support how understanding will your bank be when it hears of the sudden and permanent loss of a shareholder or key individual and revenues have dropped? Is this a business model your bank will continue to support?

Then ask yourself if you can afford not to consider Business Protection.