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Business Continuity
Business Continuity
Being the boss might give you greater freedom and earning potential. It also means more responsibilities and the need to plan for all eventualities.
Chances are you insure your premises, vehicles, equipment and stock against fire, flood and theft, but what about your most valuable asset - You?Life is full of risks, business being especially so. Succeeding in any enterprise is challenging enough without worrying about the unexpected consequences of illness, injury or death. If you or a key person in your business were unable to work, how long could your business survive on cash reserves and goodwill? Business Continuity works for your business when you can't, providing financial protection for you and your business.
A real life story:Roofers Limited is a business based in Hamilton. Tony does all the roofing installation, Peter does the accounting and administration, and John does the sales and account management to bring in the new clients.
Due to the dangerous work Tony does, the business puts in place Business Continuity Protection. However, an unfortunate incident (Tony falls from a ladder) causes Tony to become paraplegic, and can no longer work as a roofer. Peter and John cannot do what Tony does and need to find a skilled replacement.
Fortunately the sum insured is enough to cover the revenue losses of $180,000 for six months. The Business Continuity Protection shows the business to be in a strong financial position and they are able to fund a qualified replacement for Tony.
What would have happened without Business Continuity cover?
- Due to a shortage of skilled labour, it would have been very difficult to replace Tony without the financial means to attract the right person.
- The company would have to advise clients that they could no longer provide their service.
- Peter and John would be forced to wind up the business and find work elsewhere.
Commonly asked questions
If your business needs to continue after the disablement of a key person, you need to contact us about Business Continuity and understand how it can work for your business.
