Key Man Insurance

Businesses may want to protect the key employees within their firm – perhaps the key salesperson, or the IT manager without whom the business will not function properly. Keyperson / shareholder / partnership protection can provide a fixed sum should the individual be unable to work, or even die. The benefit will be designed to cover the firm’s expenses in meeting any emergency costs, recruiting a replacement employee and protecting the future of the business.

If a shareholder were to pass away, the firms remaining shareholders or directors may want to purchase the deceased’s shares from their estate promptly to maintain control of their business. The same scenario also applies to partners in a firm.

Please contact us if you wish to discuss your Business Protection provisions.

Key man Insurance

When a key person of a business dies it can have a huge financial impact which could eventually even lead to the closure of the business.

To protect your business against the death, terminal or critical illness of a key person with key man Insurance.

Key man insurance is a business insuring itself against the financial loss it would suffer if a key person in their business died or were diagnosed with a critical illness if chosen, during the length of the policy

Key man insurance is a life assurance or life assurance and critical illness cover policy taken out to cover the life of a key person within your business. The policy is owned and paid for by the employer, so any sum assured is payable to the employer.

Key man Insurance is designed to pay out a lump sum on the death of the insured key person, during the length of the policy. It is paid as a lump sum and could significantly help the business to recover. The proceeds can be used to help replace lost profit or finding and hiring a replacement.

Shareholder Protection

When a shareholder of a business dies it can have a huge financial impact which could eventually even lead to the closure of the business.

Share Protection allows the remaining partners, directors or members to remain in control of the business following the death of the business owner.

In the event of a business owner dying or being diagnosed with a terminal or critical illness, share protection can provide a lump sum to the remaining business owners. This means that in the event of a valid claim being made during the length of the policy, the policy could pay out a lump sum to help purchase the deceased partners/directors/members interest in the business.

Without Shareholder protection business owners could lose control of a proportion or, in some circumstances, all of the business. The family may choose to become involved in the ongoing running of business or could even sell their share to a competitor. A share protection policy can help avoid these issues.