Keyman Protection


Keyman Protection is a form of Life assurance. It is owned by the key person’s employer. It insures the life of a key person in the firm who is not a shareholder.

Many small businesses rely heavily on the skills or technical expertise of a single person. Where the person is a shareholder, the firm would normally use shareholder protection. However, sometimes the key person is not a shareholder and so a different arrangement would be needed.

What Benefit Does It Provide?

Keyman protection provides the company with a sum of money. This enables it to support itself whilst it either restructures, searches for a replacement or re-skills existing employees.

Typically, keyman insurance is based on either a multiple of the key person’s income. Alternative methods exist, for example, using a multiple of their contribution towards company profits.

In addition to life assurance, key personnel can also be insured against serious illnesses. Such as those which would prevent them from performing their duties.

Keyman Protection

What Should I Do Next?

Please contact us to discuss shareholder protection schemes.

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