There are a number of things in business that we can predict, or at least make an educated guess about. Things like rising costs of gas and electric in the winter, a downturn of sales on out of season products and predictable staff absences with the changing of the seasons. And when you can predict, you can mitigate, but not everything in business is as easy to anticipate. Continue reading “Worst Case Scenarios: What Happens When Your Business Is Not Protected?”
Key man / key person insurance is a specially designed type of life insurance intended to protect businesses from the loss of one of the key people in the organisation. In many smaller companies much of their success rides on the shoulders of one or two critical people, and if that person was suddenly lost, it could spell disaster for the business. Key person insurance will provide much needed capital at such a time, so that the company can fill holes in its profits, recruit a replacement or buy out a director without creating a crisis. Continue reading “Is Key Person Insurance Tax Deductible?”
As a business owner, you will be aware that there are some people working for your company who could be described as indispensable. These are the people who, if they are unable to work, would cause serious cash flow or operational problems for your business. Key person insurance helps to protect your business from issues like this.
If you’re on the hunt for VC funding for your start up, no doubt you’ll be willing to reveal plenty of business details to potential backers, to ensure their trust and confidence. From operations to finances, vision to processes, you know your business inside and out, and are ready to tell your VC everything you know. But did you know you could be asked to step on the scales too? Continue reading “Want VC? Better Get Key Person Insurance”
Many businesses operate with a fairly small team of senior managers, meaning that the loss of one of these people could seriously impact the viability of the business. We’re not talking people leaving the company, which can be planned for and militated against; we’re talking about sudden death or critical illness that will unexpectedly and suddenly take that person away from the company. Continue reading “Key Person Insurance – What You Need To Know”
There are few relationships in life which are held in as much esteem as a worthy business partnership. You’ve worked together for many years to build a successful business, and know each other like siblings. There is no greater asset to a company than the dedication and devotion of an amazing business partner; that is until something goes horribly wrong. Continue reading “Business Partnerships: What Happens If a Partner Dies?”
As a small business, you rely much more heavily on the individual members of your workforce than many large companies do. With single people taking on multiple roles and responsibilities, you could find yourself up a certain creek and short of an oar if you suddenly lose a key member of your team.
Key man, or indeed key person, insurance is one way in which you can ensure your business remains fully operational in the event that a crucial worker is no longer around to work with you. Here’s what you need to know about key man insurance, and how it can benefit your small business. Continue reading “The Benefits of Having Key Man Insurance to Small Businesses”
For most small business owners, their personal lives and business life are pretty much one and the same thing. Being inseparable from your business is not a bad thing, but it is important to incorporate a healthy amount of personal financial planning into your plans, to make the most of both the challenges and opportunities presented by being a small business owner. Continue reading “Financial Planning for Small Business Owners”
If you’re not a regular user of Twitter for much more than catching up on celebrity gossip, you might be wondering what part it can play in helping your business. Well, you might be surprised to know that numerous businesses, large and small, get the scoop first by making the right connections on this rapid transit social network. Continue reading “Top 5 Twitter Accounts For Financial News”
The clue is in the name but it can be a bit complicated, and there may well be confusion over who it might be suitable for.
Who Is A Key Person?
In the simplest terms the insurance is taken out on the life of an employee (that is an important point to note) of a company. That person must have a value to that company. In insurance speak that is called an insurable interest e.g. employee A brought in £500k of business last year therefore we need her to continue in business. The Business therefore is going to be affected without that key employee. Continue reading “Key Person Life Insurance Explained”