Key Person Cover for International Businesses

Almost every business contains a Key Person/s that are of paramount importance to the continuing success of the enterprise. This may be because they win new business or design new products, or perhaps they manage key existing client relationships. They may perform on a non-revenue generating but nonetheless essential function – for example a compliance manager who may be expensive to replace.

Why does your business need Key Person cover?

The illness or death of a key person can present challenges to profitability, businesses could lose big accounts, fail to service their debt or face expensive recruitment costs. If they are a regulated business and the individual performs a formal oversight function, the business could potentially lose their ability to trade.

This is especially pertinent for International Businesses where the UK unit is a subsidiary of an overseas parent company. Business risk is magnified in these scenarios and the visibility to the parent company finance team may also be lower.

Peace of mind

It is possible, and often prudent, for businesses to insure against this risk. It is possible to cover a key person’s absence through ill health, critical illness event, or death. The insured amount needed can be calculated with the assistance of a financial adviser in reference to the above issues. Many of the associated premiums through the company are tax efficient as business expenses, reducing the real cost. There is no greater necessity in ensuring the very survival of the business against these sadly all too common occurrences.

How we can help

Our colleagues at Carpenter Box Financial Advisers can review your current situation and discuss what insurances you and your business may need.

For more information about Key Person Cover and how to better mitigate your business risks in this area, contact our team on 01293 227670.