Key Person Insurance
Every business has key individuals whose knowledge, expertise, and leadership are fundamental to success.
Key Person Insurance from Omny Benefits ensures your business remains financially stable and operationally secure if one of these essential team members passes away, becomes terminally ill, or is diagnosed with a critical condition.
In many SMEs, key individuals might include owners, senior managers, or top-performing salespeople. While insuring physical assets like equipment and premises is standard practice, protecting your most valuable assets—your people—is often overlooked.
At Omny Benefits, we help you identify your key people, calculate the right level of cover, and tailor a policy to your business’s unique needs. This financial safety net ensures you can navigate the challenges of losing a key individual without compromising your company’s future.
Key Benefits
- Financial Stability: Protect your business from sudden and significant financial losses.
- Operational Continuity: Minimise disruption to critical business functions and projects.
- Debt Protection: Ensure loans and financial obligations are covered during periods of uncertainty.
- Investor Confidence: Maintain trust and stability with stakeholders and lenders.
- Tailored Solutions: Policies customised to fit your business structure and key personnel roles.
FAQs about Key Person Insurance with Omny Benefits
A key person is someone whose skills, expertise, or leadership are vital to your business’s success. This might include founders, CEOs, senior managers, or key sales executives who hold essential client relationships or drive significant revenue streams. Losing them could impact operations, client trust, and overall stability.
The sudden loss of a key individual can have far-reaching consequences, including:
- Revenue Loss: Expertise and leadership may be challenging to replace quickly.
- Operational Disruption: Projects may stall, and deadlines could be missed.
- Financing Challenges: Lenders may hesitate to provide funding.
- Investor Uncertainty: Confidence in the company’s stability may waver.
Key Person Insurance provides a financial buffer to help businesses manage these risks and maintain continuity and confidence.
Your business takes out a life insurance policy on the identified key person. In the event of their death, terminal illness, or critical condition diagnosis, the policy pays out a lump sum to your business. This payout can be used to:
- Recruit and train a replacement
- Cover lost revenue and stabilise cash flow
- Repay business debts and obligations
- Buy out shares from the affected individual’s estate (if applicable)
The cost depends on factors such as the key person’s age, health, role in the business, and the level of cover required. While premiums may vary, the financial protection provided by Key Person Insurance represents an invaluable safeguard against potentially devastating business disruption.
At Omny Benefits, we conduct a thorough assessment of your business to determine the financial impact of losing a key individual. This includes:
- Evaluating their contribution to revenue and profitability
- Assessing their role in client relationships
- Calculating the cost of recruitment and training for their replacement
We’ll work with you to tailor the right level of cover, ensuring your business remains resilient and protected.
