Key-Person Insurance

Consider Key-Person Insurance to keep your Pharmacy doors open 

Written by Shadia Kouzma from PPS Mutual 

As a pharmacy owner your business is your primary and greatest investment: physically, emotionally and financially. It’s what funds and directs your lifestyle. 

And continued success of your business, relies on the people who run it.  

Loss of key staff, whether it be you as an owner, a business partner or one of your Pharmacists, sales manager or other highly skilled employee’s, can affect every aspect of a business – revenue, profit, goodwill and ultimately the value of your business. This means that most pharmacies are carrying significant financial risk should the unexpected happen to one of their key people.  

SO WHAT IS KEY PERSON COVER? 

Key Person Cover is insurance effected by an employer on the life of an employee (the key person) whose services and knowledge are instrumental to the running of the business. The insurance policy is owned and paid for by the employer and, when the key person dies, is disabled or suffers a serious  critical illness, the policy proceeds are payable to the employer. 

In the same way that business insurance can compensate an employer for loss suffered because of fire, theft or water damage (the damaged or stolen asset can be replaced) Key Person Cover can compensate the employer for the loss of a key person in the event of death, disability or critical illness.  

Benefits of Key Person Cover 

  • It ensures continuity of credit and effectiveness of the pharmacy and its activities. 
  • The employer has peace of mind that funds are available to absorb the loss of the person. 
  • It covers an operational loss during a period of readjustment. 
  • It pays additional expenses of finding, employing and training new employees. 
  • Meeting existing contractual commitments  
  • Maintaining customer confidence with minimal disruptions  
  • Maintaining supplier confidence by continuing to meet financial obligations.  

What Life Insurance Products can be used for Key Person Cover? 

The sudden death, disability or illness of a key person to your business will have the most impact on the ability of your Pharmacy to continue operating.  

Therefore Life, Trauma and Total and Permanent Disability insurance products can be used to take out Key Person Cover. 

CASE STUDY: KEY PERSON COVER: PROTECTING FOR LOSS OF REVENUE 

DOES YOUR INSURER SHARE IT’S PROFITS WITH YOU? 

PPS Mutual is the only Life Insurance provider in Australia that currently offer life insurance products with a profit share and who distribute the profit to its Members. That means our profits are shared with you, our Member, instead of any shareholders. It’s our way of putting our Members first. For more information on Life Insurance for Pharmacists visit here.

Please contact Shadia Kouzma, PPS Mutual State Manager, Victoria & Tasmania on 0421 127 403 or email skouzma@ppsmutual.com.au  to find out how PPS Mutual can help you and your business.