When you get in touch with us one of our experts will have a chat with you to assess your requirements for keyperson insurance and guide you through the options and work with you to establish your needs, together we can establish what you need covered, for example:
1. Repayment of bank loans. (secured by the employee/stakeholder)
2. Repayment of any loans the key individual may have made to the company.
3. Appointment of a successor.
Who Constitutes a KEYPERSON?
A keyperson is any ‘key’ employee or stakeholder on whom the business depends on, for its continuing profitable trading.
LEVEL OF COVER;
In calculating the correct amount of cover an insurable value must be put on the potential loss the company could suffer on the death or serious illness of a key individual.
In assessing the amount of cover, the following factors should be considered.
• Any loans guaranteed by a “keyperson”.
• Loss of profits due to illness or death.
The death or serious illness of a key individual could place a threat on the future profitability of the company. The cover required is the estimated financial loss that the business would suffer plus the costs of replacing the key individual. Other than in the case of loan cover, estimating the financial loss can be quite difficult. The level of cover is normally related to either the person’s salary or to the percentage of the company’s profitability directly attributable to that particular individual.
At Stuart Insurances, we can provide personalised guidance around the calculation of the financial loss and consequently the sum assured.