The loss of a key person or partner can have a significant impact on the profit and capital value of your business. In the event of a tragedy, you want to be sure you are covered — with Honan’s key person and/or partnership insurance solutions you can ensure your business survives.
Key Person Insurance
Key person insurance provides financial protection for employers in the event a key person suffers major illness, death or disablement. A key person is defined as an employee whose contribution, knowledge or work is uniquely valuable to the business. This may be an executive, a principal shareholder, specialist within the business or your number one salesperson. The policy protect against losses such as the death or disablement of a key person and also the costs associated in replacing them.
Partnership insurance (or buy/sell insurance) is designed to protect the business owners managed by a Buy/Sell agreement. In an event of the death of a business partner, this insurance product allow the remaining partner/s to be in the position to buy out the deceased’s equity in the partnership from the estate hence preventing the business from dissolving automatically.
Key person or partnership insurance is essential for both small or larger businesses to maintain value and stabilise the business following the loss of a Key Person or Partner.