Protect your business with key person insurance
Key Person Insurance, or Keyman Protection, is designed to protect your business’ most important asset, its people. The loss of a key person for a business would impact the company’s turnover, profit generation, and in some cases even the ongoing viability of the business itself. A Key Person Insurance policy is designed to provide financial compensation if a key person within your business, such as CEO, Chairman, Founder or Top Salesperson, dies or is incapacitated and therefore unable to work.
How Much Key Person Insurance Is Enough?
Why You Need Key Person Insurance
- Financial Compensation – A Key Person Insurance policy will compensate you for lost profits
- Recruitment and Training Expenses – Replacing your key person will require recruitment and training expenses which can be covered by your Key Person policy
- Stakeholder Reassurance – Provides financial support to reassure existing customers and key stakeholders, avoiding unnecessary disruptions
- Clear Debts – Any debts that are required to be repaid upon the loss of the key person can be covered
- Avoid Adverse Terms – The loss of a key person can lead to a decline in trust and faith in the business. Reassurance can be provided with additional funds
- Ensure Business Survival – The loss of a key person can be devastating to many businesses. With the capital injection, you can ensure the survival of your business
Case Study – Protect Your People with Key Person Insurance
The Situation
JCB Pte Ltd is a boutique architectural firm based in Singapore. One of the Directors and Architects, Scott, is well-known for his unique designs and as a result, has attracted a great deal of corporate business for the firm. This has led to significant profit growth for the company based on Scott’s reputation. The shareholders of JCB Pte Ltd have quickly realised this and wish to ensure that they’re protected should something happen to Scott.
The Solution
The shareholders of JCB Pte Ltd realise that they could lose up to 40% of the company’s profits should Scott pass or become critically ill. They’re also aware that they would have to replace Scott, and the training and replacement process would take 2 – 3 years to complete. Working with us, JCB Pte Ltd takes out a key person insurance policy on Scott to ensure the business is protected should the unforeseen occur.
Scenario
One year later, Scott sadly passes away. The key person insurance policy is paid out to JCB Pte Ltd, which provides the business with sufficient funds to maintain their profitability as well as additional capital to cover the recruitment and training costs for Scott’s replacement.
Request a Quote for Key Person Insurance
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