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Keyman Insurance - have you heard of it? It provides insurance for the ( remortgages ) business in case a key person is unable to contribute for health reasons or death. Small businesses take note - this article applies to you. Keyman Insurance - small businesses shouldn't be without itAuthor: Anna Richardson
Last week, I had to travel down to Surrey to meet some new suppliers, and the journey was terrible. A cold and rainy March day, the motorway was extremely busy and there were a lot of lorries on the road. Sometimes I just couldn't see due to the spray and driving rain. As the M25 approached the traffic on the M1 slowed down and then stopped. Good old Radio 2 informed me that there was a major accident ahead and there would be long delays. Sure enough, my journey took at least an hour extra. "Then I thought about my other major responsibility, my business. We are covered in every way - we've got public liability and professional indemnity insurance, the stock ( best mortgages ) and vehicles are all covered, we've got an overdraft to help us out when needed. We've even got legal protection insurance. But what would happen to the business without my contribution? "I take care of many aspects of the business, it's a small company so we all do more than one job. I make all the relationships with suppliers and clients and keep them happy, I also take care of everything on the financial side. I know that business like the back of my hand. Without me and my knowledge, I think the others would find it very difficult. ( cheap car insurance ) If Sally, our best saleswoman, had an accident, we would find it very difficult without her. Similarly, if my co-director died or was too ill to work anymore, how would we manage without him? "It wouldn't take long for the Bank to call and ask what would be happening with his 50% share of the company. I'd be left in a position where I'd have to buy the shares if I wanted to keep the company as my own. I'd also need to bring in another employee at director level to keep the business going, and build it up again. At that level it would be very costly and very time consuming, getting the right person to fit in to a small business can be difficult.
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