Find out how keyman insurance can benefit you and your most important employees
Keyman insurance will protect your business from financial issues if there is a death, critical illness or disability within the business.
A lump sum is handed out to cover the cost of any profit losses, to cover the cost of temporary staff if an employee has a long-term sickness absence as well as loan repayments.
It will keep your business in a comfortable position during a difficult time to prevent closure.
It’s a very useful thing to have in place to make sure your company can cope with the change if anything critical was to happen.
Here’s why your business needs keyman insurance.
Who is usually covered by keyman insurance?
A key person is someone whose death, critical illness or disability would disrupt the progress of the business and could potentially lead to a dramatic loss in profit.
It covers anyone essential in the financial aspect of your business including founders and directors.
However, it can also include employees who bring in large profits, have niche talents or are specialists in their department.
What's it used for?
Keyman insurance is there to cover the business financially in the event the employee dies or can't continue in the business. This is so it can withstand any drop in revenue.
It can also be used to cover those who are responsible for loans, overdrafts and whose absence will affect business progress and ongoing projects.
What can you use keyman insurance for?
It’s used to keep cash flow secure in the business.
When a key member of the business is critically ill or dies, it can cause major disruption to the way the business works.
Keyman insurance limits the issues it will cause, by making sure any outstanding payments and staff wages are taken care of.
It can also be used if temporary staff are taken on in the event of an illness or death to cover the workload.
In the event of such a traumatic incident, your business will be covered and any supporting staff can take time to recover, without it having an effect on income and business progression.
What if you don't have a keyman insurance policy in place?
If you don’t have keyman insurance, losing a core part of your business could result in a major financial loss.
Without keyman insurance, the business could not only lose out on money, but key working relationships.
Staff could suffer when a key member of the business is lost.
Not only could it result in financial issues, but employees could lose a mentor and specialist in their department.
This could affect working relationships with clients and a potential business loss.
Get the right keyman insurance with Rigby Financial
Rigby Financial are a team of experts in business and insurance cover.
They deal with everything from personal to business insurance, making sure you are covered for a range of claims and circumstances.
You will be provided with a dedicated financial advisor to talk you through your options when it comes to keyman insurance and be there every step of the way.
Getting the right keyman insurance for your business is hard, but not with Rigby Financial.Contact us now to talk about the right cover for you.