Key Person Insurance protects a business against the risk of a ‘key’ staff member either passing away or suffering a critical illness.
Should this happen, the business receives a lump sum to help it cope with a range of difficulties. For instance, this might include loss of profits and the cost of hiring and training a replacement.
However, determining who is a key person and who therefore represents an ‘insurable interest’ for the company isn’t always straightforward.
Essentially, a key person is anyone responsible for driving ongoing success in a business.
This probably encompasses you as the company director given your vision and drive are what built the company in the first place.
Yet there are no doubt also other key individuals within the business. Over the years, Drewberry has insured people in a wide range of roles, including:
If you the business would materially suffer without a key individual’s presence, then they will be generally be considered key to the business and an insurable interest for Keyman Insurance.
If you’re still not sure about who is and isn’t a key person, why not ask an expert? The team at Drewberry are only a phone call away on 02074425880.