Business protection insurance isn’t just for when a director sadly passes. Businesses of all sizes have people in key roles with a depth of knowledge and experience that’s hard to replace.
If you had to take a significant amount of time off due to illness, is there someone who could adequately fill your shoes while you recovered?
The other thing to consider is whether the company could afford to pay you while you were off sick whilst also employing your temporary replacement.
The solution to these potential issues wreaking havoc in your organisation is to get the right business protection insurance in place.
Shareholder protection cover, for example, ensures that your director’s share would be paid to your beneficiaries if you were to pass away. So the remaining directors wouldn’t need to explore options to deliver this.
Another critical part of business protection insurance is key man cover. As mentioned earlier, when a director or key person goes off ill or passes away, there can be financial consequences too. Having this cover in place supports the cost of replacing the person affected.