Key Person Insurance
Key Person Insurance Protecting Your Business's Most Valuable Assets
Your business success relies on certain individuals whose expertise, leadership, or skills are directly linked to your company’s prosperity. What happens if you suddenly lose them?
Understanding Key Person Insurance
Key person insurance also known as key man insurance, provides vital financial protection when your business loses an essential team member through death, disability, or critical illness. It’s more than just insurance – it’s business continuity planning.
Who Is a Key Person?
A key person could be anyone whose absence would significantly impact your business:
- Managing Directors
- Sales Leaders
- Technical Specialists
- Financial Controllers
- Project Managers
- Essential Partners
- Industry Experts
- Senior Executives
Why Your Business Needs Key Person Insurance
Think about this. While most businesses insure their physical assets, many forget to protect their most valuable asset – their key people. These individuals:
✓ Drive revenue growth
✓ Maintain client relationships
✓ Provide specialised expertise
✓ Lead strategic initiatives
✓ Ensure operational efficiency
Financial Protection in Two Critical Areas
1. Revenue Protection
- Covers loss of profits
- Maintains cash flow during transition
- Funds recruitment costs
- Provides training resources
- Supports business continuity
2. Capital Protection
- Protects business value
- Maintains investor confidence
- Secures debt obligations
- Preserves shareholder interests
- Ensures business stability
Tax Considerations
The tax treatment of key person insurance varies depending on:
- Policy structure
- Purpose of coverage
- Business structure
- Premium payment method
We can help you structure your policy for optimal tax efficiency while ensuring maximum protection.
Customised Solutions
We help you:
1. Identify key personnel
2. Assess the financial impact of their loss
3. Determine appropriate coverage levels
4. Structure tax-effective policies
5. Regular review and updates
Getting Started with Key Person Insurance
Business Analysis
We evaluate your business structure and identify critical personnel.
Risk Assessment
We calculate the potential financial impact of losing key individuals.
Solution Design
We create a customised insurance strategy aligned with your business needs.
Implementation
We help you put the right policies in place with optimal structure.
Ongoing Review
We ensure your coverage remains appropriate as your business evolves.
Why Choose Harbourside for Key Person Insurance?
- Expert business insurance advice
- Comprehensive needs analysis
- Tax-effective solutions
- Ongoing support and guidance
- Regular policy reviews
Common Questions About Key Person Insurance
How much coverage do we need?
We’ll help you calculate the right amount based on your specific business circumstances and potential losses.
Who owns the policy?
Typically the business owns and pays for the policy, but we’ll advise on the most appropriate structure for your situation.
Can we cover multiple key people?
Yes, multiple policies can be structured to protect various essential team members.
Protect Your Business Today
Don’t wait for a crisis to highlight the importance of key person insurance. Contact our team to discuss how we can help protect your business’s future.
Book a complimentary consultation to evaluate your key person insurance needs and discover the most effective protection strategy for your business.