Key Person Protection
It is often the case in business that one or more specific people are, or become, crucial to the success of the enterprise: for example, the director(s) who first set up the business, the head of sales or the finance director. The death or incapacity through illness or injury of any such person during their service with the company can potentially have a serious negative effect on the company's profitability. Because of this, it is wise to arrange insurance cover to protect your company against this eventuality.
Key person protection can be arranged as part of the life insurance cover of any person deemed central to the success of your business. In the event of that person's death, the policy will pay out both a lump sum to your business and to the person's surviving spouse or other nominated dependants. Whilst any payout to the person's dependants is normally limited to not more than four times that person's final salary, you can specify a higher payout to the business itself up to any agreed level.