Key person protection
When a key person in a business dies it can have a detrimental financial effect. You can protect your business against a death, terminal or critical illness of a key person with key person protection.
Key Person Protection, also known as key man insurance or key person insurance, is where a business insures itself against the financial loss it would suffer if a key person in their business died or were diagnosed with a specified critical illness during the length of the policy.
Key person protection also pays out if the person who is insured is terminally ill and meets the definitions set out by the insurer. The exception to this is if the illness occurs in the last 12 months of the policy.
The reason this coverage is important is because the death of a key person in a small company often causes the immediate death of that company.
The policy is owned and paid for by the employer, so any pay out is payable to the employer.
For more information on which key person protection policy best suits your needs call our expert team today.