Insuring Against Loss of Profits

Many businesses rely upon one or two key people whose knowledge, experience, skill or good judgement are instrumental to the business’ success and profitability.

They could be, for example, a partner, the sales manager or even the project manager. Sounds familiar? If so, you could suffer substantial loss of profits should the unexpected happen to one of these individuals.

The good news is that there are steps you can take to protect your business in this situation.

Key Person Insurance
Key person insurance can provide a ‘cash cushion’ to help offset loss of profits if a key person dies, becomes disabled or suffers a major illness.

While most business owners accept without question the wisdom of insuring their business against the loss of physical assets from fire and other hazards, protection against the loss of a key person can be equally important.

Important information about advice
The advice on insurance and superannuation is provided by CommInsure and has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. View CommInsure's Financial Services Guide (PDF 33kb).