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Don’t get a fright! Protect your business with key man cover

It’s that time of year where the ghosts, ghouls and zombies come out but that’s enough scare for us! At Business Cover Expert, we help customers get the right business life insurance policy to suit them and protect their business. This is so that they don’t get a fright when something unexpected happens like losing a key employee who is crucial to the success of the business. Key man cover can help provide a lifeline for businesses, giving them financial support to manage such a loss.

What is key man cover?

Key man cover, also known as key employee insurance or key person cover protects businesses against the death of an employee who is key to the success of the business. This includes anyone who majorly contributes to the profits, makes key business decisions or has specialist skills or knowledge that can be hard to replace.

Why should I consider key man cover?

Key man cover is important in protecting the business in times of unexpected change. Losing a key employee if the business relies on them can cause a significant impact on the business. Key man cover is utilised to provide a financial sum to cover any loss of profits. It also pays for the cost of finding and training a replacement. If your business relies on particular individuals then it’s worth looking into key man insurance. This includes things such as maintaining key clients, generating new business or running company systems.

How does key man insurance work?

Key man insurance is a life insurance policy taken out by the business on the life of a key employee. Therefore, should the person insured pass away, the business receives financial support to cover the cost of losing the employee. This lump sum can be used to cover any lost revenue as well as the cost of recruiting and training a replacement. It can also work to cover the business if an employee suffers from a critical illness and has to take a significant time out of work.

Who is eligible to take out a key person insurance?

A key man policy can be taken out by any limited company or partnership and by sole traders. With sole traders, the policy requires another person with whom the sole trader has a financial relationship with. The policy is then taken out as a life of another policy.

How much cover do I need?

The amount of cover you can get with key man cover depends on the nature of your business. It also depends on the key employee you are looking to insure. When calculating the amount of cover you need you should take into consideration the worth of the person’s position, any costs associated with getting a replacement and the possible impact on profits. If you’re not sure our advisors can help you to think through all eventualities. We can help work out how much cover you need specifically based on your individual circumstances. How much cover you need can also affect the cost of your premiums. Therefore, we’ll take your budget into consideration too.

How much are the monthly premiums?

The cost of your policy will depend on the amount of cover as well as the age, job title and health of the individual. Insurance companies determine the premiums based on lifestyles so we speak to the individual in question to find out more about them. We’ll then take a look at all the leading products on the market to find the best solution for you that also fits within a suitable budget.

How do I take out key man cover?

An employer can take out key man cover through any life insurance provider or agency. You can get a free quote for your key man cover with Business Cover Expert. One of our advisors will then be in touch to find out more about your specific circumstances to ensure we quote you accurately. We do all the hard work for you and find you a suitable policy. So, for a free and easy way to get your key man cover sorted, contact us today.