Directors and employees with specialist skills or knowledge are key employees of the companies they work for. To lose one through death or incapacity can be damaging to the business. That is why taking out a key-person insurance to protect the company is a wise move.
Key-person insurances can provide several benefits. These can include:
• Paying the costs of a temporary replacement
• Meeting the costs of recruiting a permanent replacement
• Covering the cost of death or incapacity of a key member of staff.
The full scope of cover will depend on the type of policy purchased, but companies ignore the risks of losing key staff at their peril. Shareholders, bank managers, suppliers and customers may not be so laid back…
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