Business Protection comes in many forms. A tailored solution for your business can be advised upon based on the following:
Keyperson Insurance
Despite their utmost importance, many business owners can fail to protect their organisations from the difficulties that might arise following the premature death of a ‘Keyperson’ within their organisation. Who exactly is a Keyperson? A Keyperson is anyone who the company depends on for its continued success. They rely on their specialised skills, reputation and contacts and whose death would have serious consequences for the proftability of a company. For example, your Sales Director will have strong ties and relationships with your key clients and your Finance Director undoubtedly has a well founded link to your suppliers and Bank. How would your company cope with the loss of your most valuable business assets: the men and women whose talent, expertise and judgement contribute substantially to the fnancial health of your organisation? The table below illustrates that the probability of at least one key person in a company dying could be much higher than you may think. This may seem very stark and needless to say, not something any of us like to spend any time dwelling on. However, the unfortunate truth is it happens all the time.
| Keypersons in firm | Chance of one dying before 65 |
|---|---|
| 2 | 24% |
| 3 | 34% |
| 4 | 43% |
| 5 | 50% |
| 6 | 57% |
| 7 | 62% |
| 8 | 67% |
Source: CSO Table 15 on Irish Life 2005/07; all key persons assumed to be aged 40 and males.
Partnership/Corporate Co-Director Insurance
The untimely death of a Partner in a firm can have serious financial implications for the continuing Partners. As well as the obvious upset and emotional trauma such an event causes, there are unfortunately also potential business impacts that need to be considered. In fact, under the provisions of the Partnership Act 1890, the deceased Partner’s share of the business automatically becomes the property of their estate. It effectively becomes a debt that can be immediately called in on proof of death, unless there is a written or verbal agreement between the Partners to the contrary. The deceased’s share would normally include his or her share of retained profits and Partnership capital. What could be the financial consequences for the firm?
• The surviving Partner(s) may be unable to raise the capital required to fund the repayment of the deceased’s share of the firm to the deceased’s estate. Even where such funds can be raised by borrowing, the Partners may be unable to sustain the repayments in the long term.
• As a result the Partnership may be dissolved, with the surviving Partner(s) now no longer being part of a previously active and productive business venture. In the event where any of these implications might arise, a heavy financial burden will fall on the shoulders of the continuing Partners.
There is however a solution available that protects your Partnership in the event of the death of one of the firm’s Partners. Partnership Insurance offers a cost effective way:
• to put the measures in place now to safeguard the future of your firm
• to help enable its continued financial stability
• to ensure the next of kin receives a capital lump sum for the value of the deceased’s share of the firm.
Contact us for any queries you have in relation to your business insurance requirements or for a quotation