If your key person is out of action for a significant amount of time or even permanently, your business is at risk. When you lose a key person it can have a huge financial impact on your business. It’s a risk you don’t need to take.
The key person or people could be the owners/shareholders or you may have other employees that are key to your businesses success. Key people are the income generators, and have key client relationships and connections or perhaps a specific skill or knowledge that the business relies on to generate income.
In the event of a claim, the beneficiary of the lump sum payout is the business. These funds can go towards hiring a new staff member, paying recruitment fees, mitigating lost confidence from suppliers, basically all those financial commitments you need to keep the business afloat when you lose a key staff member either permanently or for a significant period of time.