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Keyman Insurance

As a company you insure your cars and your equipment against disaster like fire and flood and include compensation for loss of profits as well as asset replacement.

Do you insure your company's cash flow against loss of key members of staff to death or disease?

Draw up a list of your Key People, who, very broadly, are those whose skills are such that no one else could step into the breach should they die suddenly of a heart attack or the like.

In most companies the Directors are Key People, as are the star salesmen, business drivers, and possibly certain technical staff.

Ask yourself what sort of damage their loss would entail. This can range from the catastrophic (in the event of the death of an owner director this can result in the calling in of all debts, bank overdrafts etc and subsequent failure of the firm) to the difficult (the death of the top salesman may cause a new business famine and subsequent cash flow difficulties) to the merely expensively inconvenient (hiring a consultant locum at £500 a day for several months while a new person is recruited).

If you consider that you have a potential problem then you can insure against it using Key Man policies. We can help you assess what sort of coverage you might need.

Ensuring that a business would continue to trade and prosper in the event of a Partner or Director/Shareholder dying or contracting a critical illness. This involves ensuring that the share of the business owned by the deceased or critically ill party is retained by the remaining business owners in return for a cash payment representing the agreed market value of the share. The common names for this planning is Director Share Purchase Protection or Partnership Protection.

If you need help working out what you need, contact us.