As the owner of a small business, and likely a sole director to boot, you will be aware of the importance of having at least some form of business insurance. And one of the most important documents you should have, I reckon, is key person insurance.
Although we like to believe that life is predictable and free of nasty surprises, the truth is that the unexpected can happen at any time. In the unfortunate event of a business owner's death, the lives of colleagues and family can be turned upside down.
Key person insurance at least ensures that the business side of things are sorted out to an extent, meaning there's one less thing for loved ones to worry about.
Having this sort of insurance means that in the event of your death or disability, your business will have access to the funds it needs to carry on with as little disruption as possible - covering costs such as finding new employees, succession management and generally protecting your small business finance.
To be completely honest, I've been a bit reluctant to do this so far, but my bank insists that I at least keep a written document that outlines what happens in the event of my death (fingers crossed that document won't ever have to be used!).
Whether in the form of comprehensive business or life insurance or a will, it's essential you have some sort of contingency plan in place. It's certainly great to be the sole director of a business since you don't have to share profits, but that just makes it even more important to stay prepared for the worst.
Wishing you all the best for your week in business.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].