Keyman Insurance

Protect your business against disruption and loss of profit in the event it loses a key employee.

Get a quote 01372 724747

The loss of a key person to death or terminal illness is a traumatic event for any businesses on both a personal and a professional level. On a purely professional level, the loss of important skills, knowledge and relationships can have wide ranging consequences, disrupting the normal running of the business at a time when the remaining employees might be less able to compensate.

That disruption can lead to lost client confidence and ultimately loss of profits. Recovering from those issues can take some time, especially if it proves difficult to replace lost skills.

Protect your business

Keyman insurance cover pays out a lump sum in the event the key person it covers dies or is diagnosed with a specified critical illness. It's designed to help protect against the loss of profits your business may suffer, which ultimately could be the difference between being able to continue to trade or not.

The financial support a keyman policy provides could help with recruitment costs, including paying for interim staff while you look to hire a permanent replacement, costs associated with training the new recruit - as well as business continuity in the form of financial support to cover lost revenue.

Why buy keyman cover from Stonebridge?

At Stonebridge, we have significant experience in arranging key man cover for businesses of all shapes and sizes.  We can help you to make sure that if the worst should happen, you will have the protection in place that you need.

Our keyman cover will help:

  • Support your business financially - for instance replacing lost income.
  • Help you recover - covering the cost of recruitment and interim staff.
  • Maintain customer and staff confidence - by avoiding undue disruption to the normal operation of the business.
  • Meet the needs of your business - we will help make sure the cover is tailored to meet your needs and budget, and covers the right employees.

Related FAQs

See all FAQs

How much cover would be needed for keyman insurance?

This would depend on your specific business needs which we would discuss together. This could be a multiple of profits, a multiple of salary or turnover. Your accountant would be able to provide this information to you.

How do I know how much shareholder cover is needed?

We recommend you speak to your accountant who will help to establish the value of the business. The amount of cover should equal the market value of each owner’s share of the business.

What is keyman insurance?

It is a life insurance where critical illness cover can also be included to protect your business against the loss of profit should a key employee pass away or be diagnosed with a critical illness. You can also protect against the loss of a key employee to protect a debt, and it could also help towards the costs of employing and training new personnel.

Who could be classed as a key employee?

Key employees can be regarded as individuals whose knowledge, skills, experience, key relationships or leadership are very important to a business’ future financial success. These can be a senior manager, top sales person, technical specialist, business founder.

What is shareholder protection?

Shareholder protection is a life or life and critical illness policy that will pay out a lump sum that the remaining shareholders use to purchase the deceased shareholders shares from their estate.

Who should consider a relevant life policy?

Directors could take out the cover to provide a ‘death in service’ benefit, without having to take out a scheme to cover all employees. It helps to retain employees and ensure should the worst happen, their loved ones are financially cared for.

What is a relevant life policy?

It is a term assurance available for employers to provide employees with a ‘death in service’ benefit. It provides a lump sum payment on death and there can be many tax advantages to both the employer and employee for this type of policy.

What are the benefits of a relevant life policy?

No National Insurance contributions on premiums and corporate tax relief for the business itself. For their employee there will be no National Insurance contributions on premiums or benefits. The benefits are not taxed as a benefit in kind and importantly the benefits do not count towards annual or lifetime allowances tax benefits.

Who can take out a relevant life policy?

UK resident businesses. These businesses can be a limited companies, a limited liability partnership or sole trader. Company directors can take out cover with the limited company paying for this.

How much does keyman cover cost?

The cost would be dependent on the amount and term of the cover, age, smoking status. Please contact us for a personalised quote.

Latest News from Stonebridge