Businesses will, most likely, own various types of insurance due to legal requirements or to manage the risk of financial loss to the business.
However, many companies don’t cover the risk of losing a key employee. Key person cover can help insure against the financial losses that may arise if a ‘key’ employee dies, becomes terminally ill or suffers a critical illness.
The costs associated with losing such employees through serious illness or death can be compensated.
Protect profits
Small and medium-size businesses tend to have smaller staff sizes and will feel a greater impact if a key person were to die or become terminally ill. Key person cover can help cover lost profits while the company gets back on track.
Meet liabilities
Debt repayments would still need to be met even if someone important in the company became ill or died and profits dropped. Without protection, a lender can be unhappy about the debt and cancel the loan.
Fund recruitment
Cover can fund the recruitment to replace a key person. Finding the ideal candidate could take some time and cost money for recruitment fees and advertising. Key person cover can also help with training costs.
For more information about Key Person Cover, speak to one of our qualified advisers on 0800 211 8700. Alternatively, fill in our online enquiry form below.
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