Key person insurance is an important form of business insurance. There is no legal definition for 'key person insurance'. In general, it can be described as an insurance policy taken out by a business to protect that business for potential financial losses that could arise from the death or extended incapacity of an important member of the business specified on the policy.
Business Protection
Business protection is all about insuring for the unexpected. It's a way of protecting your business if something goes wrong.
One of the great risks of a business partnership is that one of the partners may die or suffer a specified critical illness, with his or her share of the business passing to their beneficiaries. The safety net is a pre-arranged scheme to ensure the surviving partners have enough funds to buy out the departed partner's interest in the business.
In the interests of financial security, business stability, and continuity - particularly for private limited companies where there may only be a small number of principal shareholders - it is important to provide a safety net following the loss of a shareholder
UK News
The chancellor is on track to meet her own fiscal rules, so why is there talk of tax rises in the autumn?
The chancellor has given an update on her plans for the economy - how are ordinary people tackling their own financial challenges?
The UK is in "intense negotiations" with the US over tariff plans, the prime minister says.
The company announces a consultation that could see the closure of two blast furnaces at Scunthorpe.
The planned cuts represent 7% of Sky's total workforce and would mean the closure of three sites.