Is your business at risk?
Protecting your business is vital in today's market conditions. All too often, the impact of an enforced change of ownership due to the loss of a business partner/director or key personnel through illness or death can have a devastating effect on a business. Iimia Wealth Management has identified three key areas of Business Protection companies should be looking to address.
Key Person Protection
Key Person Protection helps safeguard a business against the financial effects of death, terminal illness, or critical illness of a Key Person. The loss of a Key Person may result in reduced sales, loss of profit/turnover, wasted time, recruitment costs, the disruption of development plans or increased workloads for remaining staff.
A Key Person is an employee whose continued absence would affect the profits of the business. Someone whose skills, knowledge, experience or leadership are important to its continued financial success. Examples of a Key Person include, but are not limited to:
- Sales director
- IT specialist
- Managing director
- Head of product development
- Technicians and R&D personnel
If your business has an individual or individuals who are fundamental to its success, you should consider Key Person Protection.
Partner/Director Share Protection
The loss of a partner or director may destabilise the business and can quickly lead to financial difficulties. Partner/Director Share Protection means if the worst does happen, the remaining directors or partners can stay in control of the business.
In the event of a partner or director dying, falling terminally or critically ill, Partner/Director Share Protection can provide a sum of money to the remaining partner(s) or director(s). This means that in the event of a valid claim the policy could pay out an amount sufficient to purchase the deceased or critically ill partner's/director's interest in the business.
For further information call Iimia Wealth Management on 01604 615840, email northampton@iimia.co.uk or visit www.iimia.co.uk
Posted by: JLT Wealth Management
