How to find and insure your company's keyman
A keyman is someone your business critically depends on for success. The truth is that there are always going to be those 'crucial' people your business would struggle without. Here's how to find them and how to make sure your business can survive losing them...
might seem like the last thing on your mind. But the truth is that whether your business is big or small, it can't survive on its own. You must protect your business from the loss of talent.
Who is the keyman in your business?
According to the Practical Tax Loose Leaf
, the keyman is a person who is crucial to your business' success.
A business can have several key figures. Whether it's that star sales rep, the talented manager or a brilliant web developer with rare skills, you couldn't afford to lose them. If your keyman becomes disabled or passes away, you may be stuck without a crucial figure for months. Not only is getting a good employee hard, getting a new keyman can be incredibly difficult. You must protect your business' income from the loss of a keyman.
Usually, if you can say 'Without X, this business would fall apart!' – You've found your company's keyman.
How to protect yourself from the loss of a keyman
You can take out keyman insurance
on the key people in your business. Keyman insurance will keep the business running by providing cash on the death or disability of the keyman. You can cover the losses during the time it takes to replace the keyman. You can also use keyman insurance to cover the cost of training, recruiting and investing in the replacement.
By taking out keyman insurance, you're 100% covered if something happens to a crucial figure in your business.