Key person protection
Key person protection is a business insuring itself against the financial loss it would suffer if a key person in their business died or were diagnosed with a critical illness.
The policy is owned and paid for by the employer, so any pay out is payable to the employer. A key person is an individual whose skill, knowledge, experience or leadership contributes to the financial success of a business and could be one of a number of people within the business such as the;
- Chairman
- Managing director
- Marketing manager
- Computer specialist
- Sales manager
Anyone whose death could lead to financial loss for the business through:
- Loss of profits
- Having to recruit or train a replacement
- Important business contracts being lost if the key person is not there to maintain relationships
Customers and suppliers losing confidence in the busines
Why do I need Key Person Protection?
Key Person Protection is designed to pay out a lump sum on the death of the insured key person, during the length of the policy. It is paid as a lump sum and could significantly help the business to recover. The proceeds can be used to help replace lost profit or finding and hiring a replacement.
post by brian
If you would like to consider the possibilities of how your business can benefit from protecting itself against the loss of key people or shareholders please contact me on 0845 303 1144 or email brian@coopercurtis.co.uk to discuss this further.
Please note, all our content is for general guideline only, every case is different and we would recommend speaking to us before taking any action as a result of the content. The content was correct at the time it was published.