Will your business survive if a key employee or the director is no longer around?
A business cannot survive without its employees. Most businesses would fail if a key employee in the company dies or becomes critically ill. There is no warning sign you can put up for that. But a company can set up keyman insurance that helps to cover the potential loss. Key person insurance is a life insurance policy that a business takes out on its most valuable employee or employees. Key person insurance helps safeguard a small business if an imperative employee dies or becomes disabled.
A keyman is a member of the staff or a director who is critical to the financial success of the company. It could be the founder of the business, someone who sets the strategy, or even a top salesman or someone with a particular skill. Keyman insurance policies are designed to protect businesses from the financial impact of losing critical employees through death or illness.
Keyman insurance benefits the whole company as it provides continuity. Ultimately, keyman insurance helps alleviate periods of uncertainty and ensures a business can continue to operate.
- Mitigate the loss of revenue
- Mitigate the loss of income
- Provide confidence to creditors and banks
- Provide confidence to suppliers and customer
- Protect the interests of fellow partners and shareholders
- Protect the interests of employees and contractors