Protect your staff

If you couldn't cope without key employees, think about insuring them

It's a real clich� that your staff are your most important assets. But usually it's true; every company depends on its people, and particularly on the management. Insurance can protect people and this can be just as important as covering premises and stock.

�Do you employ a specialist engineer or a key salesperson?�

As well as covering your business if something happens to one of your staff, buying insurance to protect them helps demonstrate how much you value the people who work for you. Really valuing your staff - and showing it - can help you hang onto them and recruit the best.

You can get 'key man' insurance, which may be appropriate if the success of your business depends on a few particular employees. Do you employ a specialist engineer or a key salesperson? What would happen if they were suddenly unable to work? Companies run by owner-managers can be particularly vulnerable. What would happen if you weren't there?

Cover is usually equal to the estimated loss of profit that would result from that person's death. This can be difficult to calculate, but if you use a broker they should be able to help.

	��Get the latest advice with our free newsletters.

Illness cover

�It's a good benefit for your employees, and can help you attract and retain the right staff.�

Critical illness cover provides a cash lump sum for named employees in the event of a serious illness, such as a heart attack or a stroke. You can also get private health insurance. It's a good benefit for your employees, and can help you attract and retain the right staff. The prompt medical attention it provides can help enable employees to return to work more quickly, helping your business too.

Income protection insurance protects individuals by paying their salaries while they are incapacitated, meaning your business doesn't have to foot the bill for their salary as well as paying a temporary replacement.

If you or your staff travel overseas on business, travel insurance is absolutely essential. You should also check you've got cover for any items (laptops, phones, samples, etc) that are taken off the premises by your staff, either to work at home or on business trips around the country.

The buck stops with you

In certain circumstances, directors or executive officers of a limited company can be held personally liable for their actions. Competitors might be able to sue you personally for libel or slander, or a creditor company could pursue you for payment if they believed it would be more successful than pursuing the company. You can get insurance to protect against these sort of risks - ask your broker about Directors' and officers' cover.

Finding a broker

One way of buying insurance is to purchase through a broker. If you haven't already found a broker to help with your business requirements, you can find a general broker in your local telephone directory.

However, please feel free to call 0115 948 7019 to discuss your needs with The Business Risk Solutions division of Lockton Companies, a specialist small business insurance broker who can give relevant advice as well as providing you with the cover you need. You can also email your enquiries to brs@uk.lockton.com.

What next?

•	Find out if your business is a special case where insurance is concerned.
•	See how to buy insurance effectively.