What is keyman Insurance?
Put simply, keyman insurance (or key person cover) offers a cash lump sum to your company in the case of the death or serious illness of a senior employee, a director or the founder of the business.
Ultimately, keyman cover is designed to protect a smaller business from potential financial catastrophe.
In a leaner organisational structure, should a high-performing key person die or be unable to work due to illness, their value to the business is lost.
In essence, he or she may have brought valuable business development skills, a raft of business contacts or outstanding means to raise vital funds for future projects.
What are the benefits of keyman insurance?
A key person pay-out could repay outstanding loans within the business, or fund the recruitment and training costs of their role replacement. Alternatively, it could help provide valuable monies to buffer a potential loss of confidence in suppliers and clients.
Also, although less tangible, financial support could mitigate a loss or decline in working relationships due to a fall in business contacts could also benefit your business.
In a worst-case scenario, keyman cover could even help wind down the company in a methodical, compliant fashion.
If you are a business owner, our specialist advisors could help you achieve the peace of mind you deserve.