Key Person Protection
While it is common for a business to insure its premises, contents and stock, more and more companies are starting to realise that skilled employees are their greatest asset. The implications of the loss of key personnel can be major which is why Key Person Protection may prove crucial for your business.
Impact on your Bottom Line
A key person is anyone whose absence due to critical illness or death would significantly impact the profitability of your business. This might include the business owner, manager or any employee whose key skills are crucial to the smooth and successful running of the business.
If you have one or more individuals that you consider indispensable, we would recommend taking out Key Person Protection. Without putting cover in place, the loss of confidence from suppliers, customers or the bank could seriously jeopardise the financial security and reputation of your business. It is therefore vital to ensure that the business is fully protected.
How does it work?
We have also outlined the key parts of the process below so that you know what to expect.
- A policy is taken out to protect the business against the death or serious illness of a key employee
- This is often a simple Term Assurance policy, which might also include Critical Illness, owned by the firm with the key person named as the ‘Life Assured’
- The money could be used by the firm to meet financial needs while it reorganises or recruits a replacement.
- In the case of a Critical Illness claim, the key person may return to work, so funds could be used to pay a temporary replacement or replace lost profits.
Our skilled advisers will walk you through the essentials of key person protection and offer informed guidance throughout the process to make sure that you choose and implement the most cost-effective and comprehensive cover for your business.