Legal & General (L&G) has launched a business protection tool enabling advisers to help firms calculate the value of its 'key people' for insurance purposes.
The tool allows advisers' clients to calculate the necessary sum assured by either measuring a key person's value in terms of replacement costs or in terms of the impact their absence could have on profitability.
Russ Whitworth, L&G director of underwriting and claims, says: "The loss of a key person can have an immediate impact on a business and its chances of survival may be greatly reduced.
"This loss could also affect all those connected with a business such as employees, customers and the business owners.
"We encourage advisers to take the time to get in front of their business clients to explain the potential pitfalls of inadequate protection and the benefits their firm could reap from putting these policies in place."
