KEY PERSON INSURANCE

The most important asset in any business is its people. The ongoing profitability and sustainability and, as a result, the capital value of the business, are largely reliant on the input of the key employees in the business. Therefore, the loss of a key person constitutes a risk for the business.

 

What is a key person? A key person is someone whose absence through death or disability will have a material effect on the future of the business in terms of sales and/or the high cost of replacing a skilled employee, as well as the opportunity cost in the loss of profits/sales while a new replacement is being trained.

 

What does Key Person Insurance Cover?

 

Key Man Insurance is a simple, cost-effective solution that provides financial security and certainty for a business in the event of the death or disability of a key person.

 

The business can take out a policy on the life of a key person to cover the business against the expensive replacement costs, or to provide cover against a potential loss.

 

Benefits of Key Person Insurance to the company

 

  • It protects against business risk in the event of unfortunate death of the key person.
  • The morale of the key employee is boosted. He/she feels important.
  • It helps in keeping the market price of the company’s shares stable in case of death of the key person
  • It protects the company’s valuation
  • The Premiums paid under key person insurance are fully allowed as Business Expenses.

 

Who can be a Key Person?

 

Anybody with specialized skills, whose loss can cause a financial strain to the company are eligible for Key Person Insurance. They could be:

 

  • Directors of your Company
  • Key Sales People in your company
  • Key Project Managers in your company
  • People with Specific Skills in your company

 

How do I start?

 

The loss of a key person could ruin your business. Don’t be caught off guard! Talk to us today.

0202400035 | info@waltoninsurance.co.ke

GET A FREE QUOTE TODAY

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