Key Man (or Key Person) Insurance is essentially a form of life insurance for businesses. It is generally taken out by a business to compensate for financial losses that would arise from the death or extended incapacity of the key individual(s) of the business specified in the policy, and in turn ensure the continuity of the business.
The policy does not cover actual losses incurred, but instead compensates with a fixed monetary sum as specified on the policy itself.
There are generally three categories of loss for which Key Man Insurance can provide compensation:
As a result, a Key Man can be anyone directly associated with the business whose loss can cause financial strain to the business. For example, they could be a Director of a company, a Partner, key sales people, key project managers and people with specific skills or knowledge which is especially valuable to the company.
The Clifton Wealth team of independent advisers assess businesses and make recommendations every day for Key Man Insurance, whether for Directors, Partners, Shareholders or Key Employees.