What is Key Person cover?
Within your Business, you will have employees that play a vital role. This could be in the daily operations, keeping your IT systems safe or perhaps a salesperson who is responsible for the majority of the profit. Key Person cover is there to support the Business financially if one of your Key People is suddenly not there, due to death or illness.
Why should Key Person cover be considered by the Business?
- Often Key Person cover is taken out to protect the profits of the Business. Without your main salesperson, you could find that your profits drop relatively quickly. A suitable policy could provide you with a much needed cash injection to stop this from happening.
- Another common reason that this type of cover is taken, is to make sure that the Business will have the funds to recruit and replace a Key employee. An example of this might be an IT colleague who’s absence could leave your company lacking in the skills and expertise needed to protect your Business.
What else do I need to know?
-
Limited Company, Limited Liability Partnership (LLP) and Scottish partnerships are eligible to take out Shareholder Protection.
- There are different ways in which policies can be arranged which we can discuss with you.
- Polices can be set up to include Critical Illness cover and Income Protection.
- We can discuss the potential tax implications associated with this type of cover however strongly recommend you seek independent tax advice.