Businesses are all about people, and there are always some people that your business just couldn’t do without. They are key to the viability of the business and to lose them suddenly can impact financially. Luckily, a “You are important to our business success” plan addresses the risk of losing key personnel.
The risk associated with losing key people can be considerable. You not only have to find someone to replace them, you lose their expertise and skills that come from their important role in your company, as well as the time it takes you to hire a replacement. The cost of this can be huge in terms of both dollars and your time. This plan helps minimise the effect of losing a key person due to events such as an untimely death, a traumatic health event, or permanent disability, by providing your business with a financial buffer. You could also consider the option of providing cash flow if your key person is temporarily disabled and is unable to provide their expertise over a shorter period of time.
The key for your business is to maintain profitability and not allow the loss of a key person to be the financial reason for your business’ demise.