Protect Your Business Profits | The Importance of Key Man Insurance
Date: 13 September 2018 Author: Lewis Cable
Protect Your Business Profits with Key Man Insurance

Protect Your Business Profits with Key Man Insurance

Life is unpredictable, and anything can happen, so if you are running a company, it is important to protect your business profits with keyman insurance.

key man insurance policy cover for business

Why Key Man Insurance?

Most companies have at least one key individual whose contribution to the business is of utmost importance. This could be yourself (the owner of a company), a director, a designer or perhaps a craftsman or sales person with exceptional skills/expertise.

Losing such an individual due to a critical illness or perhaps even death could have a series of potentially serious consequences for your business, including, for example, an inability to:

  • Meet repayments on outstanding debts
  • Deliver on existing contracts
  • Generate new contacts/contracts

You may also lose key clients and the confidence and goodwill of both clients/customers and suppliers. What’s more, losing a key person could also mean additional expenses due to your need to replace such a person (finding temporary cover; recruiting & training a new permanent staff member). Affecting your ability to successfully run your business, these consequences obviously could also have a serious impact on your profits.

Protect Your Business Profits with Key Man Insurance

Key man insurance can help you to protect your business profits against the loss of a key staff member buy paying out a lump sum which the business can then use to:

  • Employ a temporary replacement
  • Recruit & train a suitable replacement
  • Pay off any outstanding business debts/loans
  • Reduce any financial impact a loss of contracts and/or drop in trade may have on your company

Key man protection policies and available cover levels can vary significantly between different insurance providers. Carefully comparing policies to ensure adequate cover will be provided in the event of a key member of your staff being diagnosed with a critical illness or, in the worst-case scenario, unexpectedly dying, is therefore extremely important.

Get Expert Assistance

With years of experience in helping businesses protect their profits with key man insurance, our expert advisors will advise you and your business on a suitable policy and level of cover that will meet your company’s needs. Learn more and find out how we can help you today by calling 01279 315 013 or e-mailing us at: info@spectrumfa.co.uk. You can also get in touch using our online contact form.

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