Christine recently set up her own catering business, which currently employs five people. Two years since its launch, she is planning on doubling her workforce. Two employees currently work in management roles, the other three work as catering assistants. She is interested in providing some form of protection for her staff, to act as an incentive when hiring new employees. She also wants to protect the business from sickness absence costs should they occur in the future. What benefits should she be looking to provide?
Paul Wilson, Marsh Employee Benefit Services First we need to understand which of the staff will affect the business if they are absent through sickness. It is unlikely the catering assistants will adversely affect the business other than requiring replacement. The likely risk to the ongoing viability of the business is from the two employees working in management roles and the owner. If this is the case then key person income protection (IP) is required to provide regular payments to an employer if an employee suffers long-term incapacity and is unable to work. A leading pro...
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