Cover the loss of a key person

A key person is anyone whose absence would seriously affect the running of the business., this could be anyone from the Chairman to those with a specialist skill in their department. Without keyperson insurance, a business could face a range of financial problems, whether it’s the loss of revenue that person would have generated, or potentially the loss of relationships with future customers that person would have built.

It can protect your finances in the short term

If losing a key person means lost profits, keyperson insurance will help cover those costs until a company has recovered, it can also be used to pay for wages, replacement staff and even loan repayments owed by the business, this will, of course keep a business afloat during a difficult period, an example of this would be covering recruitment costs and paying off any outstanding debts.

Use key person insurance to cover any outstanding debts

With keyperson insurance, any overdrafts and loan repayments are covered, it would therefore guarantee the repayment of loans (depending on the cover you choose) in the event of the death of a key person, having this cover in place will limit the wider impact on the business and prevent any financial difficulties faced as a result of the death of the keyperson.

Protect the future of the business

The loss of a key employee could have a huge effect on a companies staff - particularly the uncertainty about the future, the result of this is different for every business, it is, therefore, prudent to be sure the future of the business is protected, with keyperson insurance taking care of the money side of things, employees can at least be more reassured that the business’s financial future is secure and their own jobs aren’t immediately at risk.