Key Person Insurance is a form of life insurance focusing on a critical person in a business. In a small business, this is usually the owner or founders. It could also be a valuable employee or small group of employees.
If you have a person without whom your business would no longer be able to operate, get in touch with the experienced team at Accord Insurance to look at the policy option right for your business’ needs.
If you’re a business owner, you’ve probably taken the time to consider insurance options for your critical assets, like buildings, equipment, and materials. But have you taken the time to think about key person insurance?
Key person cover looks after the most important asset of all - your people. It can offer you a payment designed to cover either the temporary or permanent loss of a person crucial to your business’ continued operations.
This financial support can be vital to covering lost revenue, keeping the business running, and minimising the economic impact this loss can mean to your business.
It’s worth taking the time to consider whether your business would be able to continue operating if a key person was unable to work due to illness, injury, permanent disability, or death.
Key person insurance can be paid out either as a lump sum or as on-going, regular payments to the business. This financial cover could help reduce the impact on your business if a key person were no longer able to work due to illness or injury.
This is a very flexible form of cover. What you choose to spend your payout on is completely dependant on the unique costs and financial burdens affecting your business’ upkeep and continued survival. You could use it to offset staff replacement costs, training cost, contract penalties, the loss of profits, and more.
Suppose the loss of this key person is so significant the business could simply no longer survive, even with additional financial resources. In that case, you could use your key person insurance payout to pay off debts, distribute money to investors and employees, and close the business down in an orderly fashion.
Key Person cover is especially important for small to medium-sized businesses, which usually depend on a critical person or group of people to be operational.
The individual covered could be:
The key question to ask yourself when you are considering key person insurance is whether you have a person without whom your business would no longer be able to keep operating.
With so many different options for key person cover on the market, it can be difficult, confusing, and time-consuming to understand what’s out there and choose the right policy for your business.
That’s where the team at Accord Insurance can help. If you want to find the best coverage to safeguard the future of your business, just get in touch with our friendly team at 027 446 4475. With over 30 years of experience in the insurance industry, you can count on us to help you find the best key person insurance policy for you.