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. Several insurance websites outline 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!