Cookie Use

Drewberry™ uses cookies to offer you the best experience online. By continuing to use our website you agree to the use of cookies. If you would like to know more about cookies and how to manage them please view our privacycookie policy.

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

Given it has its 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.

Drewberry set up our insurance and were really helpful and made it very easy. I was really pleased at how responsive they are and how friendly and easy they made the whole process. I am delighted to be working with them.

Tara Wavre
13/03/2019
Compare Top 10 UK InsurersTakes approx. 60 seconds
  • £

Or call us on 0208 432 7333

Compare Top UK Insurer Quotes Logos
Contact Us
Head Office & Pensions and Investments
Cannon Place
78 Cannon Street
London
EC4N 6HL
Personal Insurance & Accounts Payable
Telecom House
125-135 Preston Road
Brighton
BN1 6AF
Drewberry London Office MapDrewberry Brighton Office Map
Our Core Principles
  • 1You Come FirstWe are a client focused business who always aim to put you first.
  • 2We are ExpertsTo provide you with the best advice, we need to know our stuff!
  • 3We are HumanWe are real people with feelings who are here to help you.
  • 4We are ProfessionalProviding a 5-star service requires a professional approach to everything we do.
  • 5We are here to EducateWe don't believe in sales, we are here to educate so you can make informed decisions.