10 Feb Key Man Insurance
No business can run without people. While some people may be replaceable, every business is dependent on a few key people for its operations. The loss of such key people due to any reason can be a big blow and can affect the revenues. It is in such cases, that business owners usually go for key man insurance.
Key Man insurance can work well for business owners if key staff members no longer work with them, meet with an accident or in the event of death. Business owners can purchase key man insurance for the health or life of key staff whose prolonged absence will result in capital erosion – intellectual as well as monetary. Key Man insurance can compensate business owners with a monthly income, which is usually stated in the insurance policy.
Key Man insurance can help business owners in the following scenarios:
- Prolonged absence of key employees: In such cases, key man insurance can provide you the necessary cover to hire temporary and / or permanent replacements.
- Profit protection: If the loss of an employee directly affects your profits, key man insurance can provide a cover for the same.
- Partnerships and shareholders: In case of death of an existing partner or shareholder, key man insurance can allow others to purchase the existing shareholdings.
For more information on key man insurance, click here.