New research(1) from Specialists4Protection.co.uk, a new specialist life and protection advisory firm, reveals that over the past 20 years, 6% of adults claim to have worked for a successful company that ultimately failed because a key member of staff died or had to stop work due to serious illness.
SMEs and other companies can take protection against this through Key Man Insurance. This is designed to protect a business against the long-term absence or death of an employee or director who plays a vital role in a company. It’s taken out by a business as a type of life insurance against the death of a vital member of staff for the success of the business. The cover can also include a pay-out in the event that such an employee is diagnosed as critically-ill, for example those suffering from cancer.
If the key employee were to die or suffer from a critical-illness, the business would receive a lump sum payment from the insurance company to cover the cost of replacing the former employee.
Paul Litster, Managing Director, Specialists4Protection.co.uk said: “SMEs should consider Key Man Insurance if they rely on members of staff with unique skills. They may be critical to the success of the business, and it may be very difficult to replace them if they were to be absent due to illness or if they were to die.
The loss of such an individual may affect the business financially, so it is prudent to cover the cost of any potential lost revenue if they are no longer present, plus the cost of recruiting a replacement and training a new member of staff.”
Specialists4Protection.co.uk has a dedicated team of trained advisers who are passionate about finding the right cover for their customers. The company’s independence allows it to recommend the best insurance products from leading insurers who can provide cover for all requirements.
Those SMEs interested in talking to Specialists4Protection.co.uk about key man insurance or life, critical illness and health insurance, can call 01243 219190, or visit the company website at specialists4protection.co.uk.