Why businesses need to know about lottery syndicate insurance
What you don’t see amidst the happy smiling faces, popping champagne corks and giant cardboard cheques is the worried face of the business owners left behind.
They’ll come back to work on Monday to the news that a majority, if not all, of their staff are quitting – some immediately – to live life in luxury. What will that mean for a small or medium business?
The first question is, how do you cope with your ongoing contracts?
A bigger or more established business with a larger staff headcount will be better equipped to absorb the temporary blow of losing a number of staff or disruption to their supply chain if a supplier’s team cashes in immediately.
It’s more problematic for a small or medium sized business to cope if 50% of their team vanished overnight in a fog of champagne bubbles and the smoke from burned bridges.
Terminal catastrophes can happen to otherwise solid, well run businesses.
Business Rescue Expert can be relied upon to help any company work out how it can survive in these emergency circumstances or offer the best way to close a business and allow the owners to start again, with their name and reputation intact, on a level playing field once more.
Another problem is if the staff decided to quit immediately without working their legal notice period.
While a company is well within its rights to bring an action against them, the reality is that it’d be ineffective as the former employees probably won’t be walking into another job immediately, if ever, and let’s face it, they can now afford, very, very good legal representation to defend themselves.
So what can a business owner do if their staff’s wildest dreams become their worst nightmare?
The answer is taking out Annual Lottery Syndicate Insurance cover. Really.
Since the advent of the National Lottery and other games offering life-changing, job-leaving jackpots, this niche insurance product was created to protect companies against an inconvenient but understandable huge turnover of staff in a short timescale.
By paying a regular premium, a company will be able to swiftly claim funds and financial support in the event of a staff win, allowing them to hire temporary staff quickly and pay for the additional ongoing recruitment costs.
Another solution could be to include a liquidated damages clause in employment contracts that would quantify any potential loss in the event that an employee leaves following a win without giving notice and requiring them to pay. They’d certainly be able to afford it!
Of course, the best lottery syndicate insurance is to be part of it yourself so you can enjoy the windfall, continue to run the business from your share of the winnings or retire gracefully!
Whilst we can’t offer this product ourselves, we can help if you come in one morning to find you have no staff left and their win becoming your loss. Contact one of our expert advisors today to set up a free initial consultation if a lottery win has changed your life overnight too – and you haven’t won a penny.