Keyman Insurance – Protect Yourself Against Some of Your Biggest Businesses Risks

You may have public liability insurance as a businessman. This covers your stock, buildings, and vehicles. You might also have professional indemnity and legal cost insurance. Are you satisfied with that? But what about your other primary assets, your key staff?

The heart of any business is its key staff. However, this does not apply to the UK’s 3.9million small businesses with up to four employees. Some of these businesses may be affected by prolonged absences due to serious illness or death. These risks are similar for sole traders, partnerships, and limited companies.

Keyman Insurance is essential in this situation. Keyman Insurance is a collection of insurance plans that are designed to protect businesses from financial losses resulting from prolonged illness and even the death of key staff members. Although insurance cannot replace employees, it can help to pay for temporary staff, recruit new staff or give cash injections.

Insurance can be divided into four types: insurance to help your company recover when key employees are temporarily unavailable or to train or recruit replacements, insurance that protects profits, insurance that protects shareholders or partners, insurance to protect your profit margins, insurance to protect shareholder or partnership interests, insurance for those involved in guaranteeing loans or bank facilities to businesses.

Keyman Insurance for those who are central in your business.
Who are your key people and why? These are the people who create, manage and direct your business. Without them, your business might lose sales and profits. Without them, your business’s viability would be compromised. Take a look at your partners, directors, owners, and everyone in between. Think about the senior management roles in sales, technical and operations. While the roles may change in every company, the potential candidates will be there.

These people can be insured to provide extra funds for temporary staff, or recruitment and training of a replacement.

Keyman Insurance protects your profits

Losing key staff has a far wider impact than the salary and replacement costs. Their loss will have a significant impact on the bottom line, as they are central to the business’s success. You can also insure against loss of profits!

Keyman Insurance protects Partners and Shareholders.

This insurance is meant to protect your interests in the case of death or long-term illness. While families may be interested in selling their shares in the business, the family members who are still involved in the business might not wish to have those stakes owned by newcomers. Keyman insurance schemes are available that provide the finance necessary to purchase shares from original shareholders or the estate.

Keyman Insurance provides insurance for those who can provide personal guarantees.

A personal guarantee or charge on the personal property of the borrower is required when a business applies for a loan. This is especially true for small businesses and new businesses. What happens if the guarantors are seriously ill? Lenders may be able to call the loan in. What then? Keyman Insurance has the solution. It is possible to arrange insurance so that the loan can be paid off and free the family of the guarantor from any major worry.

Many of the UK’s top insurance companies offer Keyman Insurance as an extension of their Life and Critical Illness Insurance. They can provide all necessary paperwork to help you implement the coverage you require and keep the taxman at bay.

Can your company afford to ignore Keyman Insurance for its business? It’s either brave or foolish to say no!