Keyman Insurance
Why is keyman insurance important?
Keyman insurance is a specialist type of cover that protects a business in the event of a crucial member of staff becoming unable to work due to critical illness or death. Sometimes also called keyperson insurance, for some businesses keyman insurance can be the difference between business failure and survival.
What is keyman insurance?
Often, a business relies heavily on the skill, knowledge, and performance of an individual (the ‘key person’) who contributes significantly to the revenue and profitability of the business. This could be a director, senior manager, or any other employee, who, if they were unable to work or if they passed away, would result in a disastrous impact on business activity or profitability.
Keyman insurance offers a lump sum payment to the business, to cover the cost of replacing the staff member or director, or to cover retraining costs, or offset the loss of revenue and profits from the loss. If the business had to claim on their keyman insurance, they could receive a tax-free lump sum amount to cover the deficit.
Key person definition
Keyman insurance should not be taken out against all members of staff: the premiums alone would mean it was not a cost-efficient decision. The business needs keyman insurance only if the individual plays a significant role in the financial performance of the business. You need to consider how expensive it would be to replace them or the impact on profitability before you take out keyman insurance against them.
Expert keyman insurance advisers
FT Rich Mummy can help you assess the suitability of keyman insurance cover for your business and help you figure out how much you should cover the key person for and what you can afford. Braced with this information, as well as more information about your business, the team of experts insurance advisers at FT Rich Mummy will find the right deals for you.
We work with a range of clients from straight forward to complex client situations, to find the right key person insurance for them. We have a team of keyman insurance experts that know where the best deals can be found and work closely with the insurance providers. This leads to special deals that might not be available to individuals, so it can pay to use FT Rich Mummy to find your deal.
Booking a consultation is easy, simply let FT Rich Mummy make it happen for you.