Can a limited liability partnership (LLP) take out keyman insurance?

We are an established partnership and are wondering whether given our set-up we can take out key person insurance for partners and employees?

Question asked by Peter Williams
Compare Top 10 UK
 Protection
Insurers
 
Takes approx. 60 seconds
Type of Cover
Level of Cover
Date of Birth

Answered by Tom Conner

Given it has it’s own legal entity, a limited liability partnership (LLP) can take out policies such as key person life insurance and critical illness cover on the life of a key person or member in the same way a limited company can.

What is an LLP company?

There are two distinct risks in this scenario: the partners and the employees. A Limited Liability Partnership (LLP) is effectively halfway between a limited company and a partnership.

With an LLP while the taxation of the individual partners is similar to a traditional partnership, the liability is limited to the amount they have subscribed to the partnership.

Very similar to a limited company, a limited liability partnership has its own persona and can contract in its own name.

It is important to recognise that this is not the case with a standard partnership in the UK because such a partnership does not have a separate legal entity.

So while an LLP is free to enter into a Key Man Insurance contract, a partnership cannot enter into a contract in the same way. This means you must take a different approach for both partners and employees.

limited liability partnership
 
keyman insurance
 
business protection
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Compare Top 10 UK Business Insurers
Need help? 
Call us on 
 -
 Our in-house Experts are here to provide
 FREE impartial advice!

Frequently Asked Employee Benefits Questions

 
I’m in the HR department of my company and we’re considering introducing a company medical...
 
I am a company director and I’m looking for some life insurance and came across relevant life...
 
I am a company director and have been made aware of both Keyman Insurance and Relevant Life Insurance...
 
We are a rapidly expanding business and wanted to know whether we are limited in the amount of key person...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Cecilia Walsh
04/12/2017

I would like to say thank you to Ciaran King for his professionalism, respect and sensitivity with dealing with my income protection insurance.

Kevin Spence
05/12/2017

Was extremely impressed with the service we received from Michael. He was so helpful with good advice and saved us money. The policy was set up and running with in a couple of days. Would definitely recommend to friends. Thank you.

Omar Holmes
05/12/2017

Sam Carr was very knowledgeable, efficient, called when he said he would and kept me updated through out the process.

We are rated 4.9/5 based on 1320 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
1331 Reviews
P
Overall Rating
Professional, quick and straightforward service from Victoria for the second time in a raw.
O
Overall Rating
Sam Carr was very knowledgable, efficient, called when he said he would and kept me updated through out the process
K
Overall Rating
Was extremely impressed with the service we received from Michael.He was so helpful with good advice and saved us money.The policy was set up and running with in a couple of days.would definitely recommend to friends.Thank you.
A
Overall Rating
I would like to say thank you to Ciaran King for his professionalism, respect and sensitivity with dealing with my income protection insurance.
S
Overall Rating
Ceiron King did an amazing job setting up my insurance. He was meticulous to all details and made sure everything was individually tailor made to suit my circumstances. When I had queries he was able to take on board any issues and find solutions quickly. Pleasant, easy to talk to, engaging, personable chap who effortlessly made me feel that I'd found the right firm. Highly recommended.