How Does Key Man Insurance Work?
Key Man Insurance is a form of commercial insurance which protects firms against the loss of an employee who would be considered as a vital cog in the business and is, therefore, key to its success.
Also known as Key Person Insurance, in the event of losing a key employee to a life-threatening or terminal illness, or even death, the policy from Rigby Financial will pay out a lump sum to assist the company in coping with the loss. The cover works in a similar way to regular life insurance although rather than paying the spouse or children of the relevant person, the business will receive the payout instead.
What Are The Benefits Of Key Man Insurance?
Dips in Profits and Sales Are Protected
Also protected in this will be your company’s share value as a perceived doubt regarding your firm following the loss of a key person will already be insured against.
Recruitments Cost Are CoveredFinding new staff can be a time-consuming and costly exercise, as can training a new employee once you have found one who is suitable. Key Person Insurance covers these costs in the event of your firm losing a key member of staff to sickness or death. No business wants to be spending in excess to replace their staff as this could have a negative impact on their bottom line.
Some Stress Can Be AlleviatedLosing a key man can be a distressing time, especially when illness and death is the cause. The strain that this type of absence can put on your staff and your business can be monumental, as staff attempt to pick up extra workload. By making sure you have key man insurance for your company means that in a worst-case scenario your staff will be in a better position to cope.
Employees Will Feel Valued
Even in the case that you do not actually have to claim back off your key person cover, you can still reap benefits that the policy can bring. For employees, knowing that they are covered under a key person insurance will make them feel secure and valued in their position with your business, something that is only bound to benefit the productivity of that individual.This type of insurance makes it clear that the business is looking to protect against potential times of adversity something which will increase the feeling of feeling of security for staff and therefore help to improve your employee retention rates.
Rigby Financial can deliver you with further information regarding our many insurance types on offer. Contact us today!