BUS043 Protecting Your Business from the Unexpected (746 words)

Small businesses often depend on key individuals, making them vulnerable if one suffers a serious illness, injury, or death. This article discusses effective planning and insurance options that can mitigate financial risks and ensure business continuity. Includes two real-life case studies.

The operations of most small businesses rely on at least one or two pivotal people: usually the owner and perhaps a valued employee.

If one of these key people were to experience a major illness or injury, or perhaps die, there is a good chance that the business would struggle and perhaps even fail.

Putting the right plans in place

Small businesses are usually structured as a sole trader, partnership or company. In each case, the owners should put plans in place to make sure the business can survive the temporary or permanent loss of a critical person.