Protecting Your Most Valuable Assets
18th November 2008
Most businesses insure the risk of losing valuable assets such as buildings and stock, but what about 'key people'? At Franklands we are often asked to arrange cover for desks and chairs when frequently the most valuable corporate assets, the people, remain uninsured. Of the spectrum of risks facing any organisation, the loss of a senior person can be amongst the most devastating and yet least often considered.
The death or long term disability of 'key people' can lead to a range of problems some of which are more obvious than others. Loss of manpower, loss of personal expertise and knowledge are reasonably clear, but in specific cases very serious implications for the future success of an organisation can result from less obvious or longer term effects.
Who are my 'key people' ?
'Key people' have different identities in different organisations. Could your business survive the untimely loss of your Sales Director with his network of personal contacts ?
Would your corporate funding be threatened by the death of the Managing Director ?
Is your IT programme reliant upon the knowledge of one member of your team ?
What are the chances of my business being threatened ?
Probably greater than you think. Insurance industry statistics show that 20% of men aged 25-40 will die before they reach the age of 65 and approximately 25% will suffer a critical illness before age 65. In spite of these figures, less than 5% of 'key people' in the UK are covered.