Could your business cope with unexpected legal costs? If you’re running your own business, as well as your day-to-day job, you probably have to deal
Talking about death and serious illness is never easy but if you are a business owner, it’s vital that you plan for the unexpected. What would happen if you suffered a heart attack or were to be diagnosed with a terminal cancer?
You might well have a life insurance policy; if you haven’t, then that’s definitely something you should think about right now. However, if you have a policy that was set up to pay out in the event of death, how would you, your business and your family cope in the event of long-term, terminal ill health?
Two recent – and very sad stories – have brought this scenario to news headlines. Whilst they don’t make for easy reading, they both contain a very important message.
Many of us will know of Jonnie Irwin, presenter of TV shows such as A Place in the Sun and Escape to the Country. You may have seen his very open and candid TV interview at the end of last year in which he publicly shared his regret at not taking out critical illness cover when he bought life insurance.
Here’s what he had to say.
“So, when you get a terminal diagnosis, it covers you for when you’re gone,” he said. “Probably the last few months. But terminal diagnoses can go on for years and…your illness affects your work, so if you’re unable to work and you’re waiting for this payout, who is going to pay the rent? So critical illness is a policy you take alongside that and that kicks in as soon as you’re ill. I didn’t take that and that took a lot of pressure on having to work on days when I didn’t want to go to work, and that’s one mistake I say to everyone.”
The second story tells of the closure of a local bakery after 42 years in business after the owner was diagnosed with terminal cancer.
Owner Roy Drake is receiving palliative care and the doctors have told the family that he has between six months and two years to live. Speaking to The News, Portsmouth, in January, Roy explained: “We had to make the agonising decision to close the business down. Nine staff members were made redundant, me and my wife lost our jobs, all on Christmas eve.
It has been a thriving business for many, many years. We have worked hard and enjoyed the income and to have to close. It is devastating, it really is.”
The business has been at the heart of the family for the past four decades and they had to come to the difficult decision not to reopen their doors after the Christmas period, and now the business is up for sale.
As these stories demonstrate, having a business protection strategy is critical – it can be the difference between your company surviving or going out of business.
Our team will work with you to develop and implement appropriate solutions to provide the stability you need to keep your business running if a tragedy were to happen. We’ll help you keep your business, your people and your livelihood protected.
Talk to NAPIT Insurance to find out more.