Key man insurance, sometimes referred to as key person insurance, provides cover against business losses that may be incurred as a consequence of the prolonged absence or death of the business owner or a key member of staff.
Generally, the process of securing key man insurance requires the business to secure a corporate life insurance policy for its key employees, business partners or owners. This process is designed to provide a financial benefit to the employers, in the event of the death or prolonged absence of the key persons as outlined in the policy. These entitlements are generally intended to be used to meet the expenses of paying temporary staff or training replacement staff. Further, they may be called upon to cover other losses to “revenue” incurred by the absence of the contributions made by key persons.
Contact Steve on 02 4648 0431 for further information about Key Man Insurance.
Who is the Key Person in your business?
A key person is an integral part of any business. A ‘key person’ is someone whose continued association with a business provides that business with a significant and direct economic gain. Economic gain means more than just profits. It can, amongst other things, also...
