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Key Man Insurance From Home Shield
Key Man Insurance is a very specialist, and sometimes complex, area. Getting expert advice is crucial in making sure your policies are set up correctly and your company is adequately protected.
In April 2010 the British Chamber Of Commerce commissioned research into the Business Protection Gap for Key Man Insurance which produced startling results. The reported gap is approximately £400 billion.
Keyman insurance, which comes under the umbrella of business protection insurance, is a policy designed to pay out an agreed cash sum if a key employee suddenly stops work due to death or a critical illness.
If the policy pays out the proceeds go directly to the company and not to the individual, which is how it differs from a Life or Critical Illness policy. The sum insured is normally larger as well often running to hundreds of thousands of pounds if not more.
For many companies Key Man insurance is a critical component of their business plan, as running a successful and forward thinking business is as much about planning for the future as it is handling the day-to-day operations.
Depending on what type of Keyman policy was taken out (see below for more details) the money can be used for a myriad of purposes, including -
- An injection of cash - Enables the company to buy time plus offer financial reassurance
- Shore up profits - Chances are a key person is directly responsible for some of the profits
- Cover the cost of temporary staff - Staff costs can be expensive especially emergency ones, and training costs can be high also.
- Recruitment - The cost of recruiting and training senior personal can be extremely costly
- Repay company debt or an overdraft - Offers peace of mind, especially to your bankers
For more information, advice and quotes on Key Man Insurance simply complete one of the forms to the right or call us free phone 0800 612 2007 to speak to one of our trained advisers.
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