The World Health Organisation (WHO) has just categorised burn out as a serious health issue, resulting in articles including that by Dr Punam Krishan in iNews (May 31 2019).
A “syndrome conceptualised as resulting from chronic workplace stress that has not been successfully managed” is how WHO has described burn out, which may not yet be classified as a medical condition, but the day on which it is may not be too far off.
Burn out can present itself as significant fatigue, palpitations, mood disorders and depression and also result in gut irritation and frequent viral infections. These symptoms can occur because workers and managers can now frequently be contacted around-the-clock and the lines between work and leisure have also become extremely blurred. Workers are expected to not just perform, but to excel and exceed targets. The pressure has never been more intense.
For UK-based businesses, there are some obvious implications such as absenteeism, but management and business owners really do need to focus on burn out too. The first thing they should do, in relation to this, is to analyse who is integral to the business’s successful operation. They should then consider how the business could operate without interruption, if a key individual – potentially themselves – were unable to work for a significant period of time.
Keyman or keyperson insurance addresses this exact same situation. There is typically at least one ‘irreplaceable’ person within a business – someone with a unique talent, degree of expertise or responsibility. Should this key person fall ill, there is a big risk to the business’s future, unless it can take, and afford to take, measures that mitigate the risk. This is where Keyman or Keyperson Insurance can pay off.
An insurance policy of this nature names the individual with the vital expertise, skill, or contacts that makes the business tick and then pays out, should that individual become ill or die. The sum provided allows the business to source or recruit someone who can step in or train a replacement. It can also provide finance during a necessary business transition, breaching a gap in knowledge or expertise, and can compensate for income losses resulting from the temporary or permanent absence of the key person.
For owner-run and other businesses, particularly those within which customers or clients have a personal relationship with the key individual, this type of insurance can become a vital safety-net. But many types of business can probably analyse their circumstances and come to the conclusion that they too have an over-reliance on one key individual. This type of insurance is actually relevant to many.
Individuals who would be named on this type of insurance policy are often the most likely people to suffer burn out, so analysing your business and appreciating this can be a vital step towards protecting the business’s future. If you have been through this thought process, and know that you need a broker who can help you put Keyperson Insurance in place, please get in touch and allow us to help you safeguard your operation.