Keyman Insurance
Keyman Insurance / Key Man Insurance
For small to medium sized companies a death or serious illness to a key member of the company could result in serious financial consequences, such as loss of profit. Taking out a Key Man Insurance / Keyman Insurance plan can be an easy way to solve any financial difficulties and maintain business continuity should a key person within your company become seriously ill or dies.
Key Man Insurance is essentially a business related form of Life Insurance, and is taken out by a business to protect the business should any financial losses arise from death or incapacity of a member of the business that is specified in the policy.
Who Can Be A key Man?
A Key Man can be directly involved with the business whose loss can cause financial strain to the business e.g. Director, Partner, Key sales people, Project managers or anybody with skills or knowledge that are of high value to the company.
There are three categories of loss for which Key man Insurance can provide cover:
- To help protect losses which are related to the period when a key person has been unable to work or has died. This will enable a company to find temporary personnel and if necessary to help finance recruitment and training of a replacement.
- To help protect profits e.g. offsetting lost income from lost sales, losses resulting from the delay or cancellation of a project or loss of specialised skills or knowledge.
- To provide compensation to protect shareholders/partners interests. Typically this enables the remaining shareholders/partners to buy out the shares of a named person within the policy (usually a family member such as a husband or wife) – ensuring they retain their true value.
If you require further information regarding Business Protection, please call our Free helpline on 0800 328 5773 and one of our Advisers will be happy to help. Or, to request a quote using our online quote form Key Man Insurance.