To say that Keyman Insurance is overlooked by most UK companies is a serious understatement. 

For those of you reading this article who do not know what Keyman Insurance is, here’s a brief explanation.  Keyman Insurance is a life assurance policy taken out by a company covering an employee/s sudden absence from the business due to death or illness. 

Over 90% of companies in the UK have 10 or less employees so at least one of these people is bound to be a key employee.  That is, the employee is key to the companies ongoing survival.  He or she could be a top salesperson, an IT professional who looks after the company website, a Director or just about anyone who strives to make the company the success it is today.  So now try to imagine what it would be like if that person/s were to die suddenly or be diagnosed with a critical illness.  What would happen to the company?  Maybe:-

• There would be a drop in sales immediately which would lead to a drop in profits
• You may need to hire expert help on a temporary basis which would cost considerably
• The company probably wouldn’t run as well
• There would be a significant amount of stress placed on other members of the workforce
• Company confidence would be damaged

Clearly losing a key person is not something any company would want to go through but it is one contributing factor that can cause companies to collapse.

By having Keyman Insurance in place the company could survive the financial loss of a key individual.  The money from the policy could be used to provide compensation for the loss in profits as a result of the keymans’ death or illness.  This would allow the company time to train another employee to take over or recruit a new suitably qualified applicant.

There are many examples and case studies on the Internet as to what would happen if your business did not have Keyman Insurance but the best example would be your own if you were to let it happen.  To put things into perspective, 1 in 5 men will suffer a critical illness before retirement age.  If your business employs 10 people then there’s a 20% chance it could effect the running of the business.

Does Keyman Insurance have any place in your business?  If you would like to talk further about Keyman Insurance and its benefits to your company please either complete the contact form or call us on 0870 080 2343.