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
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:
How do I start?
The loss of a key person could ruin your business. Don’t be caught off guard! Talk to us today.
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