Family Business Owners – Would you be willing to sack a family member when they are sick?
When I first started with Armcrest back in 2010, one of the first things Chris told me to do was to make sure that I had my Life Insurances in place. Predominately, Income Protection and Trauma was in place. Unknown to him, practicing what I preach, I already had the cover in place.
Why was he so definite about me having covers sorted?
It is a very simple scenario. If something happened to me, as an ’employee’ of Armcrest, he would not be able to continue to pay me over the long term if I was sick/injured and unable to work. Therefore, he would have to let me go. What does that mean? He is leaving one of his kids without a source of income. From a business perspective it is entirely reasonable, and I knew exactly where he was coming from and I had no intention of cancelling my cover when I came to work within Armcrest. If anything, it reconfirmed the need for me to have my cover.
So being involved in a Family Business, and it doesn’t matter if you are in with a parent, sibling or a relative. Do you and your family involved within the business have yourselves protected?
In my experience working with Family Business Owners and other SME Owners, very few businesses would be able to continue to pay a salary to someone who is no longer an active employee in the business and contributing to the business. It is a very messy situation. Could you imagine having to turn off a family members income at a time when you know the family need the money more than ever?
If you want to look at ways to avoid these sorts of problems, we would love to show you the solutions to make your Family Business even stronger.
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