Key Man Insurance

I want to protect against the financial burden caused by the death or critical illness of a key Employee

Key person insurance is designed to compensate a business for the financial loss brought about by the death or critical illness of a key employee, such as a company director or other integral member of staff. It can provide a valuable cash injection to the business to aid a potential loss of turnover and provide funds to replace the key person.

You cannot replace the loss of a key person, but you can protect against the financial burden such an event may cause. Without the right cover in place, you could also risk losing your business. Key person insurance can be utilised in several different ways.

Whatever the key person does, their loss could have disastrous consequences. Some of the problems your business may face are:

• Loss of profits
• The need to recruit or train a replacement
• Loss of important personal or business contacts
• Difficulties in meeting existing loan repayments
• Loss of confidence from suppliers and customers
• Difficulties in raising new finance for new developments
• Loss of detailed knowledge of the business’ processes and systems
• Having to repay a loan the key person has made to the business
• Loss of goodwill