The new service gives businesses the means to protect against the far-reaching impacts of losing a key member of staff through death or incapacity. It offers whole of market research to find the best competitively priced policy and provide a fixed amount of compensation on payout to help ensure business continuity.
Keyman Insurance can help a business mitigate some of the expense of dealing with the loss, which could include finding and training a replacement member of staff. In addition, it also ensures that creditor and supplier confidence doesn’t financially impact the business during a crisis by covering debt repayments and reimbursement for staff/director loans.
A spokesperson for SimpleFS.co.uk said: "Keyman Insurance probably the most important policies a business can have. If a business lost a key member of staff the functionality of their business would suffer and the financial costs can be staggering, and often financially crippling.
"A Key man policy is almost like a life insurance policy for a business, and will provide a fixed lump sum of compensation to cover anything from having to recruit a new member of staff to covering loss of profits if important projects are delayed or cancelled. Even the costs of having to pay out or alter agreements where the person is a guarantor for business loans or baking facilities are covered."
In recent years the impact of not having Keyman Insurance could clearly be seen when Carter & Carter Group plc. CEO Philip Carter (also non-executive director of Chelsea Football Club), died in a helicopter crash. When his death was announced, the company’s share price dropped 20 percent and the company was finally suspended from trading on the stock exchange.
"The impact of the loss of a key person in a business cannot be underestimated. High flyers and performers inspire confidence to shareholders, board members and creditors, and can often make up a substantial proportion of the value of a business. Having Keyman Insurance ensures that should the unthinkable happen the worst effects can be overcome, helping the business find a way to keep on trading."