How do you protect your business?

Most businesses have one or more key persons whose skill, knowledge, experience and leadership generate significant revenue ensuring the success of the business. If a key person in your business died or became totally and permanently disabled, how would your business be affected?

Would your business continue to operate? Would your business loans still be serviced? Would your clients take their business elsewhere?

Well structured business insurance helps keep your business functioning and protects the value of your business in the case of unplanned events. Key person insurance helps protect your business against the loss of key people as a result of death, total permanent disablement and/or major trauma. The loss of a key person in your business could have long-term effects on your business’s profitability. The loss of expertise, resources, and customer loyalty are all potential outcomes if you were to lose a key person, and your business may even close down.

Key person or revenue protection insurance is provided by a number of life companies. This benefit pays a lump sum in the event of a claim to provide you business with enough cash so it can:

compensate for loss of revenue;
fund the associated replacement costs;
protect the owner’s profit; and
maintain the value of the business as a going concern.

The aim is to maintain the business in the same, or substantially similar situation as it was before the unforeseen event.

If you believe your business may not be adequately covered or if you have any queries about how your business may benefit by implementing protection measures, then please contact Baker Affleck Financial Solutions for an obligation free review. We’ll be able to assess your position, determine your business risk exposure and then if necessary provide structured advice to address areas of concern.

Baker Affleck Financial Solutions will be running free seminars through March on business risk click here to register your interest with Baker Affleck Financial Solutions or call Glenn or Deborah on (07) 5538 3088.