Key Man Insurance

This section provides answers to the following questions:-

Why is Key Man Insurance Needed?
What Cover does a Key Man Insurance Policy Provide?
How Much Key Man insurance Cover Will my Business Need?
Compare Key Man Insurance Quotes with Coverzones

Why is Key Man Insurance Needed?

Key Man insurance protects your business against the loss of income resulting from the disability or death of a person in a key position.

Key staff are at the heart of every small business. The extended absence through serious illness or even death of one or more of these individuals can be terminal for the business. The risks are the same for limited companies, partnerships and sole traders.

Should one of your key staff suffer premature death, this may well cause an immediate need for a cash injection for the business. This money may be required to cover the immediate loss of turnover that may occur due to the sudden absence of the key person, or to cover the costs of finding a replacement and the cost of training them.

There would still be a need for the cash injection if the key 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 Man insurance can be taken out to provide this much-needed cash injection for these types of circumstances.

What cover does a Key Man insurance policy provide?

Key Man Insurance is designed to financially protect your small business from the effects of prolonged illness or even death of staff who are central to the prosperity of the business.

The insurance can't replace people but it can provide cash to buy time and cover the costs of temporary staff, recruitment, or loss of profits, or to provide a cash injection.

Keyman insurance falls into four categories:

1. insurance to help your business recover during the extended period when your key personnel are unable to work or to train or recruit a replacement
2. insurance to protect business profits
3. insurance to protect shareholders or partnership interests
4. insurance for anyone involved in guaranteeing businesses loans or banking facilities

How much Key Man Insurance Cover Will my Business Need?

You will need to make a judgement on who your key people are and what impact their temporary or permanent absence would have on your business. You need to bear in mind not only the impact on your business' turnover but also the cost to recruit a replacement and how much would it cost and how long would it take to be as productive as their predecessor.

Compare Key Man Insurance Quotes with Coverzones

Key Man Insurance Policies will shortly be available here at Coverzones.

Coverzones offers a free online quotation service for small business insurance in the UK. We compare the market, you decide the rest. As a specialist in small business insurance we offer cover to over 700 trades, so you'll be sure to find a policy suited to your specific business needs. Once you've chosen the most appropriate policy, the rest is easy. Simply click through to purchase and you'll be covered in minutes.

By registering a MyCoverzones account with us, you can store your quotes, buy, amend, renew and even cancel policies bought through Coverzones. All your small business insurance requirements managed in one place, giving you the freedom to get on with managing your business.