What is Keyman Insurance designed for?
To compensate your company when a key employee dies or becomes seriously ill. Life assurance on the Key Person with the benefit payable to the company.
A recent study carried out by an industry expert concluded that 72% of businesses ceased trading within 5 years of the death of the founder of the business*
Why should you take Keyman Insurance out?
It helps you minimise the financial impact of losing a key employee. Many businesses are heavily dependent on the skills, experiences and business contacts of a few key employees/directors, the death of these could have devastating effects on the business.
The loss of a key employee / director or consultant can affect your business in many ways:
- Loss of business contacts, management experience or intimate industry knowledge
- Loss of good relationships built up with suppliers, banks or distributors
- Bank loans may be called in if the ‘key person’ had given personal guarantees on these loans
- Withdrawal or reduction of credit facilities by your bank as they become concerned about the future viability of your business
- The additional cost of recruiting a suitably qualified and experienced replacement
Benefits of Keyman Insurance for Your Company
- If the employee dies a cash lump sum is paid to help maintain your business.
- Can help your company to minimise interruption to its business activity.
- Can help your company with bank loans where the key employee gave a personal guarantee.
- Can help your company pay off loans made to the company by the key employee.
- Can help provide resources to your company to find a suitable replacement.
Hennelly Finance will advise you of:
- The type of cover you need.
- The length of time you need it for.
- The amount of cover you need.
- The most competitive premium in the marketplace.
To find out more, talk to one of our financial advisors in Hennelly Finance, who will help you identify your business protection needs and recommend a plan for you and your business. As every business is different, therefore the policies need to be set up in the most effective and suitable way for the business.
* Source: BDO Simpson Xavier
