What is Key Man Insurance?
Insurance policy purchased by an employer on the life of a key employee, the loss of whose services would cause an employer financial loss. The policy is owned by and benefits payable to the employer.
Key man insurance is simply life insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business--the ones whose absence would sink the company. You need key man insurance on those people!
The potential advantages of Keyman Insurance
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Helps safeguard your business in the event of the death or illness of a nominated employee. |
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Full settlement – any outstanding balance on your agreement is paid in full if a nominated employee dies. |
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Includes Personal Accident cover, providing lump sum payments up to £150,000. |
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If you choose the Accident and Sickness add-on and a nominated employee is absent due to sickness for more than 30 consecutive days you can claim benefit equal to your monthly repayment. |
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Key asset protection policies
Overview of key asset protection
This protects the business against losses resulting from accidental damage or breakdown of certain assets held under a finance agreement.
Potential advantages of key asset protection
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Full repair costs for partial losses due to repair costs or full replacement costs of total losses are covered throughout the period of the agreement. |
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Finance repayments are covered whilst the equipment is out of action for up to six months from when the problem occurred. |
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Assets include cash registers, garage equipment, industrial plant and machinery, computers, CNC machinery, outside broadcast equipment, medical equipment, fork-lift trucks and catering equipment as well as contractor’s plant and portable electronic equipment. |
KEYWORDS: Key Man, Key Asset, Shareholder Protection Insurance
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Great British Finance Limited are authorised and regulated by the Financial Services Authority
(FSA). The FSA does not regulate some forms of Mortgage, Inheritance Tax Planning, Credit
Cards, Personal Loans, Deposit Accounts & Insurance. If you are submitting an online request,
we would advise to read our KeyFacts statement, links are at the top of this page.
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