Taking action 30 days earlier could have saved this company costly headaches.
Let’s go back a few weeks for some background. Joe is the successful owner of Enterprise Sales, a West Coast Wholesaler for high-end auto parts. He was aware of what a Key Person Protection Plan could do for his company. He had decided he liked the idea but would put it off until the summer sales campaign was over. He figured based on past years that he would have sufficient cash by then.
Andy is Joe’s star salesman. Over the last five years he out-performed all the others on their ten-person sales team combined. Joe recognizes that if Andy were unable to work for several months, the company’s sales figures would go into the basement. So, as soon as the summer sales campaign is over he plans to get Andy covered as a Key Person just in case.
Over the company loudspeaker system a voice broke the silence. “Mr. Joe Clifford please come to the office right away.” The tone of the voice did not sound good so of course he got back to his office. Andy, his top salesman, was in a hospital in Portland, Oregon. Andy sounded really concerned and told Joe, “This guy’s car came out of nowhere and hit me broadside as I was driving across the intersection. I’m going into surgery in a few minutes and it doesn’t sound good. I’ll get back to you as soon as I can. Please have someone call Seattle and get somebody else up there for the rest of my appointments this month.”
Andy called three days later to tell Joe, “The surgeon said I will probably need two more surgeries and not to expect to get back to work for at least six months and that I will be hampered for at least 18 months to 3 years! I’m really sorry, Joe, and I feel lousy. I never saw that car coming.”
The next few days were a nightmare for Joe. This was their peak sales time for the whole year. Joe had always been exceptional at establishing and maintaining good relationships with his clients; but what will happen now? The decision to put off insuring Andy for just this kind of mishap was something that should NOT have been put off.
Joe realizes he will personally have to go visit every one of Andy’s clients and try to not lose too many of them before his star salesman can return.
This delay in covering Andy will cost Joe far more than it would have cost to get adequate protection in this area or to get another salesman up to Andy’s production level.
For more information on Key Person Disability Protection, go to that page on our website.
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