Key Person Protection
Key person protection is an excellent way to for a company or a business to protect themselves against anything happening to important fee earners or those with specialist expertise. The financial effects of losing this type of employee can be significant & with the right cover in place the impact can be greatly reduced.
The type of protection policy you choose will depend on the specific person and the circumstances involved. A basic Key Person policy will insure in the case of death, but serious illness may cause similar financial losses & cover for this should be considered too.
The cost of key person protection varies according to a number of factors:
Key Person Protection – Case study
Puzzlebox Marketing is an event planning company. They have an excellent reputation for offering a full complete service to meet their clients’ event needs.
Miss Mason creates events from start to finish and is locally well known for her successful planning.
After recent discussions, the shareholders have realised that their business relies heavily on the reputation of Miss Mason’s planning. If she were to become critically ill or die during the policy, their business could suffer & they could potentially lose up to 70% of their total profits. In addition, they may have to recruit & re-train a replacement, which could take at least three years of the company’s time.
They decided to take out a Key Person Protection Plan. This would provide the funds to deal with these problems should anything happen to Miss Mason.
Do you want to find out more about Key Person Protection?
For information regarding Key person protection and to speak with one of our Independent Financial Advisors today
Please call us at our Brighton & Hove office