Key person insurance offers a solution to help address this issue by providing cash to fund the recruitment and training of a replacement, the costs of reduced productivity, or other increases in expenses.
Whilst the person may be deemed to be ‘irreplaceable’, especially if they have specialist expertise or are the business owner, key person insurance can assist with the costs of finding a locum and/or the relocation costs of a new hire – especially if you need to recruit from overseas.
Key person insurance offers several benefits –
- Provides either a monthly or lump sum payment to cover any revenue shortfalls caused by the absence of the key person.
- Helps to fund the training and recruitment of a replacement for the key person or hiring a contractor as a short-term option.
- May fund the cost of lost sales if the key person was a key driver of business development or sales revenue.
- Enables the business to continue its operation while you put a plan in place to find a replacement or even the decision to close the business and prepare it for sale.
ICIB Brokerweb has a team of Life & Health experts who understand the fundamentals of key person insurance and how it can sure up your business for the future. Whilst we can support any business wishing to put a key person plan together, we do have specialist expertise in key person scenarios for the farming, viticulture, and brewing sectors.