What is Key Person Cover?
Key Person Cover helps protect your business from financial loss in the event of a key member of staff passing away or becoming seriously ill.
The policy is owned by and paid for by the business. It covers the life of the Key Person. If there was a claim, the sum would be paid directly to the company.
Would your business suffer financially if a key staff member passed away or was critically ill?
In the event of a claim, the policy would provide a cash lump sum which could enable your business to:
- Recruit a suitable replacement.
- Provide training to existing members of staff.
- Prevent resultant cash flow problems.
- Replace lost profits.
- Help with the repayment of debts.
“40% of businesses would cease trading in under a year after the death/illness of a key person.” [stated in Legal & General state of the nation’s SME’s 2015]