Business Continuity Planning Mitigates the Loss of Vital Employees

Business Continuity planning is all about understanding your risks and finding the best way to mitigate them. However, one aspect often overlooked is the loss of vital employees.

Business Continuity and Vital Employees


The impact of losing vital employees can be more prevalent in advice-based occupations, such as architects, accountants, insurance advisers and legal advisers.
For businesses that rely on an individual’s knowledge and experience, losing a critical team member can leave a huge gap in service provision, particularly if they are injured or are unable to work for extended periods.

Their absence can disrupt your business operations and cash flow, which becomes evident when advertising and hiring a permanent or temporary replacement.
Albeit a considerable disruption, it’s reassuring to know that there are products in the market to help you keep your business on track – for example, Business Continuity Cover.

Business Continuity planning is all about understanding your risks and finding the best way to mitigate them. However, one aspect often overlooked is the loss of vital employees.


Business Continuity Cover could be your saviour.


Due to prolonged border closures and a nationwide skills shortage, Australian businesses feel the effects of a tight labour market. In short, it’s tough to attract and retain talented staff.

Business Continuity Cover gives you breathing space to decide how best to fill the gap created by staff injury or illness. Therefore, it’s vital extra protection for your business.

Clear Managing Director Lisa Carter says, ‘As a risk adviser to business leaders, I like to practice what I preach. Once I heard about business continuity cover, I immediately took out a policy to cover two roles in my business. Firstly, my role as Managing Director and secondly for my Clear Leader who runs our day-to-day operations.’

‘Business Continuity Cover is affordable. It provides assurance that should either of us be unable to work, I know I can claim the costs of recruiting and paying a replacement for up to 12 months. As a business owner, it gives me complete peace of mind,’ explains Lisa.

What is Business Continuity Cover?


Business Continuity Cover ensures you cover your business for:
  • Sickness and accidents to the insured person
  • Recruitment and advertising costs
  • Relocation costs for your replacement employee
  • Wages for your replacement employee

As with all types of insurance cover, terms and conditions apply, so you must become familiar with your policy to ensure you understand it fully.

Business Continuity Cover enables you to cover one or more vital employees under the policy, provided they are all named. For example, cover is available for up to $200,000 and can cost less than $650 per person. It’s a small price for peace of mind.


Need advice?
Clear Insurance provides risk and insurance advice to business leaders across a broad range of industries, including medical, hospitality and construction.

Our team uses their knowledge of your industry to help build a risk profile for your business. We guide you through the different types of business risk and assess the level of risk your business can financially support.

Clear Insurance does not accept insurer commissions. We make an independent assessment of your existing policies and offer advice to better protect your business. 

Our fee-for-service approach ensures you only pay for the advice we provide.

To start your risk discovery journey, contact Clear Insurance today.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.


Clear Insurance, , AFSL : 240549 , CAR Number: 465935

This article originally appeared on Clear Insurance In The News and has been published here with permission.

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