Key Employee Insurance
Why should my company take out key employee insurance?
A key person insurance policy will guard your business from the costs associated with losing vital employees through illness or death.
Entrepreneurs, proprietors and directors don’t blink when it comes to protecting the nuts and bolts of their business – but we all know your employees are your greatest asset, particularly those central to the smooth running and profitability of your company.
What does key employee insurance cover?
The benefits, limits and exclusions which apply to key person insurance will depend upon the insurer and policy you choose.
The nature and extent of cover will also depend on whether you decide to buy life assurance or joint life assurance and critical illness cover.
Why should my company take out key employee insurance?
According to the Department for Business & Skills, in 2017 there were 5.7 million UK small businesses employing between 0-49 people. In total they accounted for an estimated 99.3% of all UK businesses. There were a further 34,000 medium-sized business, employing between 50-249 employees.
Whether companies, sole traders or partnerships, each will have a key employee or employees whose knowledge, skills and work are critical to business success. Often these will be the business founders, but they can also be company directors and senior managers. If one of these key members of staff were to die or be unable to work due to a critical illness, then this could disrupt business operations and hit profits.
However, if those people are covered by key employee insurance taken out by an employer, then the business can claim for a lump sum payment. This can be used to mitigate against losses and/or assist the recruitment of a replacement member of staff.
Key person insurance is business protection and therefore covers the business which took out the policy, not an individual or individuals This is why settlements are made to the business.
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Some of the Insurance Companies we use
