Key man insurance protection

If you run a business then you know that the success of your business can be largely influenced by the exceptional contributions of a small number of “KEY” men or women within your company. These “KEY” figures should include people like your fellow directors or business partners. The premature death or long-term disability of these people could ultimately threaten your company’s profits or, even worse, could threaten the future existence of your business.

We deal with over £30 million pounds of keyman insurance a week, make sure that talk to us the experts about your needs!

If you are a Director or a Partner in a business and do not have any Director Share or Partnership protection insurance in place Click here to see our detailed page on this area.

What does Key man insurance cover?

Should one of your “KEY” staff suffer premature death this is more than likely going to cause an immediate need for a cash injection. This money may be required to cover the immediate loss of turnover the sudden absence of that key person may cause, the cost of recruiting a replacement and the cost of training them to be as productive as their predecessor. The same need for cash would apply if that same person suffered a critical illness such as a heart attack, cancer or a stroke. This may not result in their death but inevitably will mean a lengthy period of absence, if indeed they returned at all.
Key person insurance can be taken out to provide this much needed cash injection in the currency you decide for both the aforementioned circumstances.

How much key man cover is needed?

There is no magic formula to work this question out. The amount of cover is really going to be down to how much you think your turnover would be affected if that person is no longer there come Monday morning, how much it would cost to recruit a replacement and how much would it cost and how long would it take to be as productive as their predecessor. These are the sorts of questions you need to ask yourself.

Summary of key man insurance

The premature death or a critical illness of a “KEY” member of your workforce could put a huge financial strain on the profitability of your company

	Help safeguard your business in the event of the death or critical illness of a “KEY” person within your company.
	Some plans include Personal Accident cover, providing lump sum payments up to £150,000.
	If you choose the Accident and Sickness add-on and a nominated employee is absent due to sickness for more than 30 consecutive days you can claim benefit equal to your monthly repayment.

If you are concerned about this and would like to discuss your own business circumstances with our corporate financial specialists then please click on the “request some information” tab above and we will call you back normally on the same day. If you would like us to calculate the cost of covering your “KEY” people simply click on the “get a quote” tab.

Great British Finance Limited are authorised and regulated by the Financial Services Authority (FSA). The FSA does not regulate some forms of Mortgage, Inheritance Tax Planning, Credit Cards, Personal Loans, Deposit Accounts & Insurance. If you are submitting an online request, we would advise to read our KeyFacts statement, links are at the top and bottom of this page.