What is Keyman Insurance?
Key man insurance is simply life insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business–the ones whose absence could sink the company.
It allows you to
Replace lost profits.
Repay any loans taken out by the key person.
It helps with recruitment and training costs for replacement staff.
It allows you to meet ongoing expenses whilst the level of sales recovers.
It facilitates payment for outside consultants or expert advice.
Stay in control of your company in the event of a Keyperson falling critically ill or passing away.