You will find that the success of almost all small and medium-sized businesses is dependent on a few people who make a significant contribution.

These key people can include owners, senior directors, salespeople, production managers, research and development staff or other people with specialist skills or knowledge.

Often a person’s value to the business is reflected in their remuneration package. When you are trying to identify your key people this can be a good place to start, although this may not always be the case.

Whatever the key person does, their loss could have disastrous consequences for your business. Some of the problems the business may face are:

• Loss of profits.
• The need to recruit or train a replacement.
• Loss of important personal or business contacts.
• Difficulties in meeting existing loan repayments.
• Loss of confidence from suppliers and customers.
• Difficulties in raising new finance for new developments.
• Loss of detailed knowledge of the businesses processes and systems.
• Having to repay a loan the key person has made to the business.
• Loss of goodwill.

Having the right protection in place can help to ease all of these problems and these policies are designed to provide a cash injection if the key person dies or suffers a critical illness. They can also provide a regular income for the business if the key person is temporarily disabled and unable to work.

Do you have someone who holds all your business technical expertise? Or maybe they are the founder and main driving force of your business?

There may be only one person who is key to your business but quite often there will be three or four, even in a medium-sized business.

What would happen if they were to die or were diagnosed with a critical illness?

Reduced sales, loss of turnover, difficulty in recruiting and/or training a replacement? Could your business survive?

Every day in the UK the Department of Work and Pensions estimate that 1,346 people will die and on average 2.2 million people will be off work for at least six months at any one time through sickness and disability. Inevitably this will include business owners and their key people.

Fortunately, as professional financial advisers we can provide you with advice on how to help protect your business.

To find out more and to discuss your needs, please contact us on 01274 515 747 or email us at mail@lwood.co.uk