Key Person Protection
What would happen if the key person in your business couldn't come into work tomorrow or for the foreseeable future? Key Person Protection also known as Key Man Insurance, goes a long way to protecting your business from the loss of one of its most valuable assets: its people.
With a Key Man Insurance policy in place, a cash lump sum will help your business through the financial fallout that can come with the death or critical illness of a key employee or business owner.
And you can use the money as you need to: to pay wages or suppliers, or to protect your reputation in the market place. For many business, in these circumstances, having a key person policy in place gives them the best chance of survival for when that person is ready to return to work or has been replaced.
What is Key Person Protection for?
Key Person Protection Insurance, commonly known as key man insurance, is designed to protect your business from the loss of one of its most valuable assets - your key employees.
What does Key Person Protection cover?
Key Person Protection Insurance, also known as Key Man Cover, can cover the business in the case of death or critical illness of the employee in question.
We would advise you to consider cover for both. This is because, in our experience, critical illness can have just as devastating effect on a business and is often a more likely scenario.
The top tier critical illness policies we recommend cover over 50 conditions, with the most common critical illness claims being for cancer, heart attack, stroke and Multiple Sclerosis.
How does Key Person Protection work?
We'll work through the many different ways of structuring key man insurance / key person protection policies to put together a cost effective, tax efficient solution for you.
Then, if you have a policy in place and are covered for a death or critical illness, the insurance provider will pay the full amount of the sum assured in the event of a valid claim.
The business does not have to repay the funds to the insurance company and you are free to use those funds to protect the business in any way you need to.
Do I need Key Person Protection?
A better question is: how would your business continue if you lost one of your key employees?
It's worth thinking about what would happen if you or a business partner is diagnosed with a critical illness and perhaps unable to work for at least 6 months. Apart from work going undone and key contacts being lost, how would your customers, people, suppliers, competitors and bank react?
It's likely that's you'll need to hire extra help, your staff may be concerned about their jobs, your suppliers may be worried about payment, competitors may feel more confident about approaching your customers and the bank may seek reassurance about the future of the business.
BPS Business is confident every business would benefit from Key Person Protection / Key Man Insurance. The only question is balancing how much you need with how much you can afford.
The real question is: can you afford not to have it?
What are my options?
Ask Us - we make getting Key Person Protection quick and easy because we ask the right questions, research your options and present a suitable, cost-effective solution.
You can be confident in advice provided by an experienced protection insurance advisor who draws on his Chartered Accountancy background to specialise in helping business owners address these specific issues.
We do not charge fees for our advice and policies can start from under £10 per month.
We can provide you with a no obligation Key Person Protection Insurance / Key Man Insurance quote by calling the BPS Business on 028 3833 8000 or sending an email here.