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Key/Person and Buy/Sell

Key person insurance or buy/sell insurance protects your business from the consequences of the untimely death of a “key person”.

A “key person” is defined as someone who is important for the profitability of your business and the loss of such a person can have a wide range of consequences:

  • The cost of finding and training a replacement
  • The time delay till the replacement person can contribute at a similar level to the deceased person
  • Loss of sales and customers
  • Loss of production
  • Loss of financial backing from lenders
  • Loss of credibility and good will

If this key person is a partner in your business you may unwittingly find yourself in partnership with the beneficiaries of their will. This can be disastrous if these parties don’t have knowledge and experience in your business and you can’t raise the capital to buy out their share. Businesses have been forced to close in these circumstances but key person insurance represents an effective and affordable way to protect yourself from this risk.

Call us now on 1300 799 422 or email life@oib.com.au to talk to one of our local advisers to protect your business partners and your loved ones at their time of need.