Excellent insurance for key persons

Many companies have employees whose absence can lead to serious financial loss. A payment by the insurance company can help the company to at least partly compensate the financial loss suffered through the temporary or total absence of such an employee.

In a company, all employees make a contribution to the value chain, from the temp to the sales force members to the manager, all of which are important for the efficient and sustainable development of the company. This is why notice of termination or the long absence of an employee presents the company with considerable challenges, as internal processes have to be reviewed and a suitable successor or temporary replacement must be recruited. However, both these scenarios are substantially better than the sudden temporary or permanent loss of an employee: they can be planned, and the company can prepare itself in advance to cope with the new situation.

If an employee is suddenly and unexpectedly unavailable, the company needs well-developed organisational skills as well as personal empathy, as such an absence often goes hand in hand with tragic circumstances related to sickness or an accident which require additional support from the HR manager. In this situation which is difficult for everybody the financial effects on the employee at least are under control, as the daily benefits insurer or the accident insurer has to pay benefits for employees who are unable to work. The continued payment of the salary is therefore guaranteed and does not burden the employer and its payroll accounting. But what happens if the employee who is unexpectedly unable to work on a temporary or permanent basis is a key person in the company?

A key person is an employee who is extremely important to the company due to his or her subject expertise, experience, excellent contacts or extraordinary personality. The sudden absence of such a person can lead to significant operating problems and financial losses. For example, a company whose founder and big boss is absent is not only in danger of losing important business relationships, but also its credibility and credit lines. The absence of top salespeople who also have a broad network of relationships can act as a drag on short-term growth, as the establishment of new relationships and building of trust require much time. If a key person is unexpectedly unavailable due to incapacity for work or death, unprepared companies often face great difficulties.

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