Key Man Insurance Specialists

What is Key Man Insurance?

Key man insurance is much the same as a mortgage protection policy or a normal term assurance taken out to cover a loan on a mortgage. The main difference is the beneficiary which in the case of keyman insurance, instead of being the wife or husband its the company. The policy is taken out to protect your 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. Many large businesses will already have these protection policies in place. But small to medium size companies tend to overlook this insurance or do not even know it exists. Businesses don’t think twice to insure their important equipment. But for some reason do not think to insure the most important part of their company, “the employees” until of course its too late.

Types Insurance you may need to think about.

• A key person insurance policy will provide an income to the company whilst the key person is away,
• A policy to protect profits that may see a serious fall without that person.
• An insurance policy to provide monies to the remaining directors, shareholders or partners in order for them to buy out the share’s from the original owner.
• Key person insurance for anyone involved in guaranteeing business loans.

Who Are The Key People?

• The people who drive the business.
• The people without whom your business would lose sales and profits.
• Directors, Partners, Shareholders
• Integral managers, or key IT development specialists etc.

Insurance to Protect Your Profits

The damaging effect of losing an important employee could go well beyond just the cost of a replacement. They could be the sole reason your company is doing so well.

Protect Shareholders Partners Or Directors

Families of the deceased may want to sell their stake in the business to someone unfit to hold such a high position within the company. Insurance policies can be set up to provide the necessary finance to buy the shares from the original shareholder or their family.

Protect against those who maybe liable for Personal Guarantees

Business loans will often require a guarantee by a director or shareholder to put charge on their personal property. Key Man Insurance cover can provide a structured to pay off this loan, free the business and possibly the family from this financial burden.

FSA details

MyKeyManInsurance.co.uk is a trading style JEPFS which is an Appointed Representative of Personal Touch Financial Services Limited which is Authorized and Regulated by the Financial Services Authority.