When Imran met with a near-fatal accident that left him bedridden for more than a year, the agony was not limited to his family. A star performer, the 35-year-old was instrumental in driving business sales of his company.
By the time he joined, his company had lost a chunk of its revenues. The one major risk that modern businesses face is the loss of a keyman whose expertise, knowledge and skills are crucial to financial prosperity.
Loss of such an employee can have long-term ramifications, impact bottom-line revenues and can even affect an organization’s competitiveness. However, this risk can be kept at bay by availing keyman insurance. Read on to know why your business in the UAE requires this policy.
Smooth succession planning in family business
Most businesses in the UAE are family-owned. In other words, family members hold key positions to drive organizational success. However, in the event of sudden demise of a member holding a position of importance, it can be challenging to find a worthy successor and train him/her about the nitty-gritty of business.
At the same time, there can be difficulties in renegotiating with banks on loans and other facilities. However, the proceeds from keyman insurance can be used to bring on-board a new employee and train him/her to take the business forward.
Coverage against losses due to missed professional expertise
The loss of a key person such as CEO, sales manager, IT specialist, CFO and Managing Director can affect the professional expertise of your organization. Loss of any of the above-mentioned key person due to accident or illness can impact your firm’s profits and threaten its viability.
Additionally, the loss of a keyman can result in a loss of customers to rivals because of lack of proper strategy. This is particularly true for small and medium enterprises, which often find it difficult to fill the void left by the loss of a key person.
However, funds received through keyman insurance can help your enterprise overcome such a loss by covering for recruitment and training cost of the potential replacement along with compensating for revenues lost. In other words, it helps you to carry out operations as usual, without hiccups.
Conclusion
Keyman insurance gives you the much-needed peace of mind as you know you will be adequately compensated for the losses suffered in case of an unpleasant incident that can derail your organization’s best-laid plans and competitiveness. With people being the real assets, you shouldn’t delay in availing keyman insurance today.