Key Man insurance or Key Person insurance can play an important part in helping to protect a business. If one particular individual in a business is considered as an essential – be it they bring in significant revenue, are important to the company image or more – and their absence would therefore affect operations, Key Man insurance would be a useful thing to consider.
Hooray Health & Protection can help you to tailor a Key Man insurance policy to your business’s needs, starting from just £8 per month. Click on the “GET QUOTES” button below to explore options with Hooray.
What Is Key Man Insurance and Why Do I Need It?
Key Man insurance is a type of cover designed to protect a business should a “Key Man” (i.e. someone who is vital to business operations) dies or becomes unable to work due to illness. In this particular type of unfortunate event, Key Man insurance will cover certain costs the business suffers from losing their “Key Man”.
Any company with someone that is key to their operations should consider opting for Key Man insurance, as it helps businesses to survive the loss of such integral cogs in their operations.
For example, industry experts including Hooray Health & Protection typically set up Key Man Insurance policies for CEOs and Managing Directors whose absence/loss would be significantly detrimental to the business.
However, these aren’t the only types of individuals a business can cover, some also want to insure key sales personnel, operations managers, and others who are considered as crucial in helping the business run smoothly.
Who Are Hooray Health & Protection?
Hooray Health & Protection are a team of health and protection experts, on a mission to help their clients find the right employee benefits and engagement strategies through technology, an in depth knowledge of the industry and outstanding customer service.
Hooray Health & Protection are an SME employee benefits specialist insurance intermediary. Their focus is to provide health and protection products within the insurance space, protecting what’s important to their clients with free financial advice, available both online and over the phone.
How Much Does Key Man Insurance Cost?
The cover required for key individuals in a business can vary and Hooray Insurance can offer quotes from just £8 per month.
The cost for this type of cover will vary depending on a number of different factors relating to the business and the individual they’d like to cover. To get a better idea on how much Key Man insurance will cost for your business, you can speak to the experts at Hooray Health & Protection.
Hooray does not charge a fee to businesses for arranging their Key Man insurance. Click the button below to find out more and to discuss your options with Hooray today.
What Does a Key Man Insurance Policy Pay For?
Key Man insurance is a cover intended for helping companies survive the loss of individuals that were integral to their business operations. A Key Man insurance policy will therefore only typically pay out on such occasions as when the stated “Key Man” is absent from work due to sickness, dies or is diagnosed as terminally ill.
While all such occasions mentioned above can trigger the benefits of a Key Man insurance policy, the precise details of the cover will depend on the specific policy a company holds with a key man insurance provider. It’s therefore vital for companies to check all the protections they require from this type of insurance are covered before agreeing to a policy.
As Hooray Health & Protection claim, “When it comes to Key Person Insurance, there is no one-size-fits-all approach”, every business having its own individual needs, and specific individuals that help it meet those needs.
When enquiring about Key Man insurance with Hooray, their expert team will ask questions to better understand a business’s operations, and the role the integral individual plays in this – e.g. how much the Key Man contributes to business profits, the cost of replacing the Key Man and clients/suppliers which have an important relationship with the Key Man. All of this helps experts to offer up a cover best suited to the business.
How Long Will It Take Hooray to Cover Me?
Getting set up for cover with Hooray Health & Protection usually won’t take long at all. Firstly, you’ll have to have an initial chat with a member of Hooray’s expert team so that they can learn more about your business and requirements for cover – this will typically take anywhere between 15-30 minutes.
The information collected by clients during this initial discussion is then ran through Hooray’s panel of insurers. So long as there aren’t any red flags, and everything seems to check out okay, Hooray can then help to get clients protected right away.
In some instances, Hooray may need further information from you, and may need to refer the case for medical underwriting.
Hooray will always push to leverage its relationships with insurers so that clients are getting their terms quicker than they would by going direct.
How Is Key Man Insurance Calculated?
Quotes for Key Man insurance are typically calculated based off one of two things:
- How much direct influence the key man has over the gross profit of the business.
- If the key person holds the responsibility of managing the business’s cash flow.
There are a few ways to calculate quotes for Key Man insurance, one of the most common methods being to calculate a portion of the profits: (the Key Man’s salary) / (the total salary bill) x (net or gross profits) x (years it would take to replace the Key Man).
As the needs of businesses and the individuals integral to them can vary, the appropriate cover for such a Key Man, as well as the calculations for this, can also vary.
Why Apply for Key Man Insurance With Hooray Health & Protection?
Hooray Health & Protection are comprised of an expert team, who understand the levels of Key Man cover out there. Hooray’s team use their in-depth knowledge of this space to help find policies that perfectly fit businesses, and the key individuals they want to cover.
Hooray will work with its customers, taking into account all of their key considerations, requirements and preferences before advising on the best type of cover for them. They’ll also make use of their specialised experience and insurer relationships to offer customers the best possible price.