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Ready for the worst

Insuring against illness to key personnel safeguards your business. By Tony Harris

The premature death of a key person can have a devastating effect on a company’s ability to function and even illness in an important employee can have serious consequences.

In the same way as you insure against the loss of plant it could be even more important to insure key personnel.

Arranging protection tends to be seen as a complicated process but the principles are similar to arranging personal financial protection.

Questions to ask include:

  • Is there anyone else who could pick up the role of the key individual? If not, what would it cost to hire an outside person?

  • What would the potential cost be to the company in terms of lost profit?
    Once the nature of the company’s exposure is understood, protection can be put in place.

Tony Harris is managing director of Contractor Financials, a partner of the Professional Contractors Group.