By Sarah Hall |
Last updated 23/10/2020
A business can fail due to the loss of a Key Man. If someone crucial to the running of your company died or fell critically ill, the financial impact could be significant. Relationships with customers, suppliers and contractors could be jeopardised.
Key Man insurance could protect your business in such an eventuality. It's a life insurance policy your company takes out on a specific employee. Your business pays the monthly premium and, if there was a successful claim, receives the pay-out.
Investors will often ask for Key Man cover as part of any deal or funding. The investors then know they're protected, in the event that your business loses that Key Man.
Key Man insurance can cover more than the death of a vital team member. It could provide protection if that person were to become critically ill or become disabled.
It can protect anyone who plays an important role in a business and whose absence would adversely affect its profits, operations and relationships. This could be a director, shareholder, owner or operations manager.
How long you take out Key Man insurance for depends on the employee. It comes down to how long you think you'll need the policy for, or if there is a specific requirement or reason you're putting the cover into place.
A policy can last as little as 12 months. But the employee's age will increase at each renewal. Their health could also change. These factors could affect your monthly premiums.
If you take out key man protection for a longer period, you'll still be able to cancel it without financial penalty if the relevant employee leaves.
QuoteSearch can introduce you to one of its business protection partners. You'll be able to discuss your requirements and compare quotes without obligation.
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Speak to one of our business protection partners
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The process is relatively simple and not that different to purchasing normal life insurance. You will complete an application form, which will be sent to the insurer. One of our business protection partners will talk you through the process.
Complete our online form and we'll introduce you to a carefully selected business protection partner. You'll be able to discuss your requirements in more detail and consider a range of options.
We only work with intermediaries that will give you the best service.