Business continuity

Running a business is a challenge and one that leaves little time to gaze at crystal balls and consider what is round the corner. Pat Ball from Nurseryplan reports on some major issues businesses may face that are often forgotten when arranging adequate insurance protection.

The fact is things happen. I recently arranged cover for a Nursery which had one key member of staff off long-term sick; creating extra unexpected costs for the business and other problems too.

Protecting your bottom line

Imagine if you suddenly find a parent is suffering with cancer, or another serious illness, and fees go unpaid for months; before you know it you have a loss which can run into thousands of pounds - do you suffer the loss or refer to the debt collectors?

Protecting your business

There is an alternative and something you can do to avoid such a loss of income when parents cannot work - you can arrange a group sickness/accident cover for all parents. This means you can claim for unpaid fees when parents are unable to work and, in doing so, you not only keep a customer, you also get paid. On top of that, you get a big thank you from the family, who can retain their childcare in their real hour of need. This is great PR, and some nurseries see this as a massive selling point for their business; in essence you are offering 'free' childcare for a period of 12 or 24 months when parents are sick or following an accident.

Protecting your key people

Think about how you would cope without your key members of staff? As a business owner you do everything you can to make your business a success, but have you considered protecting what's probably your most important asset - your people?

In most small and medium-sized companies the success of the business can depend on just one or two key people. If you've worked with these people for many years it's easy to underestimate just how valuable they are, how much they know about the company and how many extra hours they put in.

But we can never be sure what's around the corner. Sometimes, without warning, life throws the unthinkable at us. To help protect your business you can arrange key man protection - because people are important. Whilst you can't predict what will happen in the future, you can make sure you have the right protection in place to keep your business afloat if a key person becomes critically ill or dies.

What is key person protection?

There's nothing mysterious about Key Person cover. Put simply, it insures key people within your business in case they become critically ill, find themselves unable to work due to long-term sickness or, die. If your business relies on a just a few people, making sure the business is covered in the event of the unthinkable is a fundamental step.

With Key Person protection you can either insure your key people and receive a lump sum, or you can choose Key Person Income Cover for Sickness which will pay you an income each month to cover the amount of profit the key person would have been bringing into the company*. This will help you continue to pay the monthly bills and day-to-day running expenses.

Your business can weather most storms with the right type of protection

Pat Ball - Nurseryplan

* Benefit will not be paid if accident or sickness occurs within 24 months of the start date and is caused by a pre-existing condition.

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