Key Person Capital: Key Person Capital Insurance Cover can provide your business with sufficient cash to preserve its asset base (repay or reduce debts, free up cash flow and maintain its credit standing) if a business owner dies or becomes totally or permanently disabled.
The insurance cover income can be used to stabilise the business and maintain its capital value. The capital value of a business, following the loss of a key person, can be reduced in the following ways:
Key Person Revenue: Key Person Revenue Insurance Cover can provide your business with sufficient cash to compensate for the loss of revenue and replacement costs if a business owner or key employee dies or becomes totally or permanently disabled.
The loss of a key person can decrease revenue and increase business costs. The insurance cover income can be used to replace the loss in revenue the key person would have generated and fund the extra expense the business would incur to find a suitable replacement.
Business Expense: In the event a business owner becomes totally or permanently disabled due to injury or illness, Business Expense Insurance Cover will insure 100 percent of your fixed business expenses.
Business Expense Insurance Cover is specifically designed for self-employed individuals, or members of a small business, who need to cover their fixed business expenses if they can’t work due to injury or illness. This cover is vital for sole proprietors, who are generally responsible for 100 percent of the fixed expenses of a business, and it is equally important for small business partnerships to ensure that each partner is covered for his/her share of business expenses.
Common fixed operating expenses of running a business include: