Key Person Business Insurance
The loss of a key person in your business could have a severe impact. The business could be hit by a loss of profit, reduced sales, recruitment and training costs and increased workloads for the remaining employees.
to learn more about Key Person Insurance
Key Person Insurance, also known as Keyman Insurance, can be described as an insurance policy taken out by a business to compensate for the financial loss that would arise from the death or incapacity of an important or key member of the business. Employees of all types, particularly those with specialist knowledge or skills can be Key people.
Cover
How much cover is needed will be different for every business. There is no single way to calculate the financial value of a key person.
When calculating the extent of any business cover required you will need to consider – loan repayment, replacement of lost profits, cost of recruitment of replacement personnel, and repayment of partners/directors loan accounts.
This plan is owned by the business, they pay the premiums and any pay out is made to the business if they find themselves in the situation of needing to make a claim.
Depending on the ownership structure of the keyman insurance, you may find that premiums are tax deductible or that tax is payable on the benefit paid out at the time of claim.
FAQs
for
Key
Person
Insurance
What is home insurance?
Home insurance is designed to protect your property and belongings against risks such as fire, flood, theft, and accidental damage. It usually includes buildings insurance, contents insurance, or a combination of both.
What is the difference between buildings insurance and contents insurance?
Buildings insurance covers the structure of your home, including walls, roof, and permanent fixtures. Contents insurance covers your personal belongings, such as furniture, electronics, and clothing.
Is home insurance compulsory?
Home insurance is not legally required. However, most mortgage lenders require buildings insurance as a condition of the mortgage to protect their security over the property.
Do I need home insurance if I own my property outright?
It is not compulsory if you own your property outright, but many homeowners still choose home insurance to protect against unexpected repair costs or loss of belongings.
Does home insurance cover accidental damage?
Accidental damage cover is often optional. It can cover unexpected incidents such as spills, breakages, or damage caused by children or pets, depending on the policy terms.
What does buildings insurance typically cover?
Buildings insurance usually covers damage to the structure of your home caused by risks such as fire, storm, flood, subsidence, or vandalism. Policy details vary by insurer.
What does contents insurance typically cover?
Contents insurance generally covers your personal belongings against theft, fire, and damage. Some policies also include cover for items taken outside the home, subject to limits.
Do I need home insurance for a buy-to-let property?
Yes. Landlords typically require specialist landlord insurance rather than standard home insurance, as it offers cover suited to rented properties and tenant-related risks.
Can I get home insurance if my property is unusual?
Yes. Some insurers offer cover for non-standard or unusual properties, such as listed buildings, thatched roofs, or homes with previous claims history. Availability may be more limited.
How is the rebuild value of a property calculated?
The rebuild value reflects the cost of rebuilding your home from scratch, not its market value. It is often based on factors such as size, construction type, and materials.
Can I change or cancel my home insurance policy?
Yes. Most home insurance policies can be amended or cancelled, although cancellation fees or charges may apply depending on the insurer and timing.
