Protect your business with Key Person Insurance
Key Person Protection, also referred to as Keyman Insurance, is a form of business protection which allows you to put cover in place against losing a key person to death or critical illness. It could cover perhaps yourself as the business owner or your top sales person. If the worst were to happen how would your business cope? The emotional fallout would be huge but on top of that the company would have to deal with the financial repercussions and the stark reality is that many small businesses would struggle.
How does it work?
If you take out a Key Person Insurance policy it will pay out a lump sum to your business should the person insured die or be diagnosed with a critical illness. You must always check what conditions your insurance covers before going ahead.
The policy is therefore made up of both life insurance and critical illness cover. It is owned by the business and the payout is for the benefit of the business to enable trading to continue and a replacement member of staff to be recruited and trained. The idea is that having key person cover in place provides valuable financial breathing space, protecting against a loss of profits, ensuring any business loans can still be paid and enabling the shares of a deceased director to be bought back if needed.
To find out more about Key Person Insurance give us a call and one of our advisers will go through your options. We also provide life and critical illness cover for individuals, so if this is of interest to you please get in touch and we will explain what your options are from a personal perspective.