If you own a business, it is likely that you will have a number of insurance policies in place. Depending on the nature of your business, you will probably have some sort of liability cover as well as indemnity insurance. You may well have a life insurance policy and possibly even key man or income protection insurance but have you considered insuring the ongoing functioning of your business by way of putting Powers of Attorney in place?
Many people simply do not consider what would happen to their business if they were to suddenly become unable to work. As many small businesses have only one director, if that director were no longer able to sign company documentation, many different aspects could become adversely affected. For example, without the director’s signature, it may become impossible for payments to be made from the company account. Other business-critical transactions might also be brought to a standstill, such as agreeing terms for ongoing business with clients/suppliers or signing documentation relating to business premises.
A lack of Powers of Attorney amongst business owners is particularly of concern for the growing number of so called ‘silver start-ups’ across the UK. It is estimated that over 47% of small business owners are over aged 55; therefore being in an age group more vulnerable to conditions such as dementia. Having said this, an accident resulting in incapacity can happen to anyone of any age at any time.
Whilst it is possible to apply to the courts for a Deputyship that allows someone else to manage your affairs, this process is time consuming and can take up to six months. In some cases, the business will simply not be able to survive this long.
Putting Powers of Attorney in place is a relatively straightforward process and provides real peace of mind for both business owners and their families. For more information or to speak to a solicitor, please get in touch.
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