Key Man Insurance Advice

What's the Purpose of Key Man Insurance?

This form of insurance aims to protect a business from financial loss in the event a named key individual within the company dies. This is why key man insurance is often referred to as life insurance for businesses, although there is also the option to cover long periods of absence because of a critical illness or accident.

Key man cover can be particularly important for small businesses where individuals are far integral to the ongoing performance of the business. Many small businesses are not simply protecting against financial loss as often they're protecting their very existence.

Finance can be hard to find, especially in the current economic environment, and business investors often stipulate that key man insurance is put in place to secure the funding and thereby protect their investment if the principle of the firm should die prematurely or be unable to work for an extended period.

How do Key Man Insurances work?

It is not only the director or shareholders that can be protected under this type of policy,key man insurance policy can cover any named employee within the firm, such as a key development manager, or key sales person.

As well as providing a guarantee for businesses loans and/or banking facilities such as coverdrafts, compensation can be provided for finding and training replacement personnel as well as protecting profits, such as offsetting lost income from lost revenue. As an example, if the businesses key person for generating sales was absent, resulting in falling sales, then key man insurance would provide some financial compensation.

I need Key Man Insurance for my business

Many business owners are recognising the benefit included with Key Man policies, to join them simply get in touch with us today for a personalised Keyman Insurance Quote.