Key Man Insurance
Which of the following would damage your companies profits the most?
• The company car is stolen
• The window is broken
• The photocopier breaks down
• The Courier lets you down
• A key person dies
Usually the answer will be ‘the key person’ and commonly that will be the one thing that’s not insured. You’ll find that the success of almost all small and medium-sized businesses is dependent on a few people who make a significant contribution. These key people can include the owners, senior directors, sales people, production managers, research and development staff or other people with specialist skills or knowledge.
Whatever the key person does, their loss could have disastrous consequences for the business.
Some of the problems the 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
There is a product that can safeguard your business and profits against the financial impacts of losing a valuable employee whether that be due to death or critical illness. These policies are written very much in the same way as your personal mortgage or family protection policies. The difference being that the business insures their ‘Key Persons’ for a sum of money in the event of the employee’s death or critical illness, in order to cover the company’s potential losses in that instance.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE