Key Man Insurance
In every business there are key people who make a significant contribution towards the profitability or stability of the business. If something should happen to them, the business would suffer a financial loss
- the cost of replacing that person;
- the cost of re-training the replacement;
- the loss of contracts because this key person had specialized knowledge.
Why do you need Keyman Insurance?
Key Person Insurance can help you reduce the financial impact that the loss of a key team member would have on your company. This type of insurance will pay the company in order to replace the loss of income that results. This policy belongs to the company and has no effect on the individual’s personal circumstances and therefore does not attract any estate duties.
To calculate the potential loss to your company look at the following:
What is the present salary package of the key person?
What is the estimated value of this individual to the business?
How much would it cost to replace this person (recruitment fees and cost of re-training).
Does this person have specialized knowledge which would lead to a loss of revenue to the company if this knowledge could not be offered to customers?
Contact MST to help you look at your key man insurance requirements.