Keyman Insurance

Race drivers need insurance too!

Do You Need Key Person Insurance for a Race Team?

by Monticello Speedway Insurance Team on October 21, 2013, no comments

So you’ve decided that you need to take out key person insurance for the most important member of your racing team – the driver.

This is an excellent idea as without the driver, the racing team would lose an extremely important part of their program, as is extremely difficult to replace – especially at the last minute. The loss of an important member of any team can be extremely damaging to the overall health and success of an organisation – so it pays to make sure that you and your financial interests are protected should anything unforeseen happen.

Some good questions that the team should ask themselves when deciding to take out this type of insurance policy would be:

  • How easily can we replace this driver?
  • Will our team/business be able to continue to grow and be competitive should anything happen to our driver?
  • How much income will we lose as a result of our driver not being able to drive our car?
  • Are we able to continue running our race team without the driver?

These are just a few of the questions that a race team would need to ask themselves when weighing up whether they need to insure the key members of the team. The cost of not covering all the bases can be extremely high, with losses of income and overall business failure being a very real possibility should the driver no longer be able to compete.

We came across some excellent information about insuring a key man in a business or racing team from a financial services company. This page, www.webberwealth.com.au/key-person-insurance outlines a bit more about what can be covered, and what sort of benefits can be expected to be received should the race driver ever get injured or sick, and be unable to fulfil his/her duties as a part of the racing team.

Fortunately, there are options available to any racing team out there who wants to protect their interests should anything happen to their key people. Make sure you do your research, and investigate all the options out there – it could save your team thousands of dollars and months of lost work!

Key Person Insurance 

Finding the Right Insurance for your Key People and Employees

by Monticello Speedway Insurance Team on October 17, 2013, no comments

When deciding on whether to take out life or some kind of income protection cover for your key employees, there are a number of variables that need to be taken into consideration. If you don’t take out the right level of cover, you can leave yourself or your business exposed should anything happen to you, or any of the other key people within your business.

If your business’ success and profits rely heavily on the input and performance of one employee, then you should definitely consider taking out some kind of insurance policy to cover the business should anything happen to them.

Whether it be death, disablement, illness or injury, it is wise to make sure you have covered all the alternatives and unforeseen events that might prevent this key person from working.

Losing managerial skills, expertise and leadership of a key person within your business could result in incurring substantial financial losses as well as an overall reduction in business profitability. A number of other costs may also be involved in recruiting and training a replacement that is suitable to the business.

Other negative impacts to the business might be:

  • Loss of the business’ goodwill
  • Unable to repay debts
  • Loss of revenue
  • Having to rehire more people

This type of insurance can sometimes be expensive which is why it’s a good idea to consult your accountant and financial planner first. But the cost of not having the cover could be extremely higher should you end up with some kind of long term injury or illness.

Before you make your decision, you should compare a couple of different life insurance and wealth management companies, and see whether they offer some kind of insurance for key persons.

Be sure to stick around and visit this blog regularly to make sure you stay up to date with all the latest news and advice when it comes to protecting your greatest asset – yourself!