Business
Protection - Business Finance
About
Business Protection
Mot
many businesses have the right cover in place to protect themselves
if a key employee, shareholder or partner becomes critically ill,
dies or is unable to work due to long term disability and face potentially
devastating financial consequences should such a catastrophe occur.
Most
businesses are likely to already have arrangements, such as succession
planning, employee benefits, share schemes and bonuses in place
to help safeguard against key people leaving or being headhunted.
They will also have insurance to safeguard assets such as their
premises, vehicles, stock, equipment, information and systems, but
very few businesses appear to fully understand the scale of threat
of the loss of a key employee could have on their company as a whole.
Businesses
need protection for exactly the same reasons as individuals. If
there is a death or critical illness in a family or business both
could be severely affected. When
people think about key employee cover, life cover is often the benefit
they think of first but critical illness cover is just as important
because the financial impact on the business is the same.
Make
a list of potential events that could affect your business. This
could include the photocopier blowing up, having a company car written
off or a fire at the office. Now rank them in order of financial
impact and consider which are actually insured against.
Businesses
will usually have some sort of disaster recovery and sales and marketing
plans in place for future growth of the business but are unlikely
to have planned or even thought about the consequences of the death
or serious illness of a partner or shareholder. These
events can clearly have a devastating effect on any business.
Setting
aside a tiny fraction of monthly costs for life and critical illness
cover will help to safeguard against any possible threats and could
provide enough to cover the loss of profits, recruit a replacement
and the costs of a having a consultant filling in during the gap.
It is an easy process as taking out any other type of insurance
and the fundamentals are all quite similar regardless of the type
of business.
If
you need to learn more about business protection you should contact
an independent financial adviser who will advise on an appropriate
solution to ensure all your assets are protected.
List
of Independent Financial Advisers ( IFA's )
OCIS
provide general financial information, we urge you to consult an
Independent
Financial Adviser ( IFA )
before making any important decisions about your finances. |
