Do I need keyman insurance?

This is a question we get asked all the time here at Rigby Financial, and the answer is very simple – yes. Nine times out of ten, keyman insurance is a worthwhile and important investment.

As a business owner, you’re likely to insure your premises, machinery, company vehicles, computer equipment etc. You know these things are essential to the day-to-day running of your business and, as a result, invest in a policy to make sure they’re covered. So, the question is, why wouldn’t you insure your key people? People who are crucial to the future success of your business.


A keyman insurance case study

“Alan Jones is the Managing Director of a private limited company, recognised as one of the foremost design agencies in the Northwest. Sales revenues are increasing and much of this is down to the tireless enthusiasm of David Smith – the Sales Director. His skills have meant many accounts have been snatched away from larger established agencies. Indeed, his most recent successful pitch has netted a contract that will guarantee expansion for the next five years.

Alan was confident, with the help of recently agreed finance from the bank, the company could look forward to a rewarding and profitable future. But then, suddenly, everything changed. He received news that David had tragically passed away in a traffic accident.

After the initial shock, Alan’s thoughts turned to David’s family. How must they be feeling? Will they be ok financially? He then began to think about the implications of David’s death on the future of the business. What if an important contract was now in danger? Would his death mean the loss of sales, new accounts and people’s livelihoods? Would it have a detrimental effect on business cash flow, profits and turnover? What if the bank lost confidence in the company and decided to call in the recent loan?

David was a key employee. Alan had to face the reality that his death could also mean the death of the business. Ironically, he could replace David’s company car – because that was insured. If only he had the foresight to insure David himself. A cash injection from a keyman policy could have replaced lost revenue, paid off outstanding loans, or covered the cost of recruiting a replacement. Most importantly, it could have given the business financial breathing space to cope with the change.”

Imagine if you were Alan Jones. How would it feel if your company – a company that you had put so much time and effort into – suddenly faced an uncertain future due to the loss of a key employee?

Insure your greatest asset with a keyman policy


Staff are your biggest asset. Perhaps they have a financial stake in the company? Maybe they’ve built effective working relationships with your clients, or possess skills and knowledge that are difficult to replace? Whatever it is they bring to the table, you need to be sure that – if the worst happened – your business could cope financially with the change.

Keyman insurance is the answer. It’s just as important as any other type of business insurance (if not more so!). So why not get in touch with our advisors today? Let us find the perfect keyman insurance policy for you and protect your business against the worst-case scenario. Either give us a call on 01744 886077 or send an email to enquiries@rigbyfinancial.co.uk. For further information, it’s also worth checking out our blog ‘Everything you need to know about keyman insurance’.