The premature death or a critical illness of a “KEY” member of your workforce can place your business in jeopardy.
Key Man Insurance is very similar to mortgage protection policy to cover a loan on a mortgage. The main difference is the beneficiary which in this case, is the company. The policy is taken out to protect the business against the financial repercussions of losing a valuable employee due to critical illness, ill health or death.
The benefit is to help the company cope financially without that person anymore. A lot of small to medium size companies often overlook key man insurance. Businesses will insure important equipment, but do not insure the most important part of their company, “the employees”.
Who should you cover with key man insurance?
- The people who drive the business.
- The people without whom the business would lose sales and profits.
- Directors, Partners, Shareholders or essential managers etc
- Any person responsible for key projects
For advice on Key Man insurance, contact us now