The loss of a Key Person within a Company can have a dramatic effect on the profitability and the day to day running of the business. Key Person Insurance is not in itself a product, but an application of insurance designed to maintain a company’s business profitability.
It aims to provide the replacement costs of an individual, whose loss (whether permanent or temporary) could have a significant impact on the company’s profits or turnover. This could present itself through loss of Goodwill, Technical skills/knowledge, Financial arrangements, Expansion opportunities or business projects.
Any business could suffer a financial loss if a key employee is absent for a long period of time. This is in addition to the day-to-day problems that will occur within the company. Key Person Insurance could provide funds to maintain the value of the company, enable the company to recruit and train a replacement, repay outstanding loans, help ward off a takeover, pay for temporary staff and inject capital when morale is low.
If you would like further advice or information, please call us on 0118 916 5480 or complete an enquiry form.
*Information correct as of May 1st 2016