An important aspect of running a business today involves the business owners/directors responsibility for managing risks that could affect the businesses viability. There will be some risks you can't control such as the impact of an economic downturn but you can plan for and protect your business against many people-related risks such as those arising from a death, illnesss or injury that causes you or someone else important to your business to be out of action, either temporarily or even permanently.
Business insurance offers an effective means of protecting your business by removing or at least reducing the potential impact of some of these risks.
Business-owners need a plan to ensure that a co-owner's departure goes as smoothly as possibly and doesn't affect the business's ongoing viability, value or your ability to retain control over its operation and future.
The loss of a key person (generally anyone whose role and performance contributes to the revenue and/or holds key relationships) can seriously affect a business's value and prospects. Replacing such people will also bring additional expense through the need for the recruitment and training of a suitable replacement.
Situations such as retirement and resignation generally allow time for a business to adjust to the loss of a key person and to minimise the impact associated with that. However, illness, disability and death can be game-changers for a business unless provision has been made for unexpected events such as these.
Depending upon the structure and nature of your business, issues to consider might include the need for: