Softening the blow when you lose a star performer
What if your MD had a heart attack or your top salesperson was diagnosed with cancer? How much would it cost to replace them? Could customer confidence be shaken? And how would your bank react? With Key Person Insurance you can minimise the impact of losing someone who plays a pivotal role in the success of your business.
What is Key Person Insurance?
A specialist policy for anyone who contributes to the profitability of your business, Key Person Insurance provides the extra financial support your company may need while it’s missing an important member of staff. There’s a range of cover options, including death, terminal illness, permanent disability and critical illness
"How would your business cope if you lost one of your key members of staff? Finding a suitable replacement can take time and money. Training others likewise. And whilst you are without your key player, what's happening to your cash flow, profits and debts?"
– Simon Claxton, financial services specialist at Macbeth
How Key Person Insurance protects your business
Losing a key person can have a dramatic effect on your business, reducing profitability through the loss of goodwill, specialist skills and knowledge, financial backing and expansion opportunities. Key Person Insurance can cover the cost to recruit and train a replacement, repay bank loans, ward off a takeover, pay for temporary staff and inject capital when morale is low.
Key Person Insurance provides a cash injection when your business needs it most, protecting your brand and the reputation you’ve worked hard to build.
- Protect your company’s biggest assets – Key Person Insurance provides cover for the people who make your business successful
- Choose cover to suit your circumstances – you call the shots when it comes to who’s insured and how long they’re insured for
- Cash lump sum – with a policy that’s owned and paid for by the business, you’ll receive a lump sum payment if a claim is successful
- Cut your losses – an injection of extra cash will help you maintain the value of your company and confidence in the business
- Cover your debts – the cash can also be used to help you pay new and existing debts that may mount up while you’re missing a key person
Key Person Insurance can minimise the impact of losing someone who plays a pivotal role in the success of your business.
Why you should consider Key Person Insurance
- Everyone insures their business against risks such as fire and flooding. But the chances of someone suffering from a heart attack or cancer before they reach retirement age are much greater than the chances of business premises burning down.
- Many venture capitalists insist that Key Person Insurance is in place before they invest in the company.
- Losing a key person can make banks nervous – and may prompt them to freeze or call in existing loans. Clients and suppliers could also start to question your ability to deliver, reducing confidence in your brand.
- According to research performed by Legal and General, 52% of SMEs would cease operating in under a year if they lost a key person.
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"Thanks to Simon and Vikki for your help in organising our Key Person covers. You made the process considerably easier with your knowledge, approach and patience!"