home | insurance services | business insurance | business risk Business RiskThe purpose of ‘business risk’ cover is to protect the business in the event of a key person loss and other liabilities. It has nothing to do with the owners interest in a business, it is all about business survival. Key Person Protection Often when a business suffers the loss of a Key Person the business itself may fail or falter. Generally speaking a Key Person would be a person responsible for generating income, holding key relationships, having key skills and possibly providing guarantees for funding. A ‘Key Person’ loss could adversely effect the financial viability of a business as the business would be required to replace the deceased or disabled person. Key Person Cover provides capital to the business for:
Policies should be owned and paid for by the business as the cover is designed to help the business. Debt Protection As the name suggests this cover is designed to provide funds to retire debt and release owners from guarantees and other debt instruments. Ownership and intent of the policy is critical when providing cover for this risk.
These critical areas are often overlooked in business insurance. Contact us now for more information.
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