Running a business is no easy feat at the best of times but 2020 has been especially difficult for business owners and 2021 and 2021 is starting the same way.
Business owners must juggle hundreds of tasks daily and when the business is up and running with employees, it is also passed onto them to help support the day to day running of the business.
The last year or two has started to make busines owners realise that is anything was to happen to them or their key employees then the business could be in dire straits without the key members holding on to the reigns.
We have compiled a list of some of the protection policies which are available to employers and how they can help support your workforce during these times.
Key Person Insurance
Employees or business owners can be vital to the day-to-day operations of a business, managing key relationships or providing skills required to keep the business up and running.
You can ensure the life of your key employees (or yourself) so that if anything happens to you the business would receive a lump sum cash payment to hire a replacement, help repair key relationships or even keep up with payments during this time.
It does not have to just be life insurance either and many businesses protect their key staff against critical illness or accidents also.
Insurance Specialist Hooray Health & Protection who support small businesses with Key Person Insurance remind us you should never pay a fee for setting up key person insurance as brokers are paid for placing the policies with insurers.
Relevant Life Insurance
If you are looking to reward your key employees to ensure they do not start looking for jobs elsewhere which will leave you high and dry you can always look at providing life insurance as a benefit.
With up to 50% of employees looking for a new job post covid-19 it seems not everyone has been treated well during the pandemic.
Relevant life insurance can provide your key member peace of mind for their families during the current pandemic and show you care about them.
Business Loan Protection
If you and a business partner have taken a large loan against the business or have received investment you may want to consider looking at business loan protection.
In the event of death, accident, sickness, or critical illness it can provide a lump sum to clear the outstanding balance of your loan and allow the business to continue growing whilst it deals with the tragic circumstances of a death of an employee.
Many lenders have started to add this as a a requirement for new lending so it’s worth ensuring your finances are all up to date before considering any business refinance or investment plans in the future.