Key Man Cover

Key man cover is a life insurance policy taken out on the key person or people within a business. For smaller businesses this is usually the owner and perhaps one or two essential people. For larger organisations it could extend to the head of each department and beyond.

The company purchases a life insurance policy for a key person, pays the premiums and is the sole beneficiary. The policy protects the company against loss through death of someone who is crucial to the business – someone whose sudden absence could ruin the company. If that person dies, the business receives the insurance pay out, which can help it to survive.

Key man insurance can also be termed key woman insurance, key person insurance or business life insurance. It differs from group life insurance in that the company is the beneficiary, not the next of kin. The policy can also include critical illness cover if required.

PWS Group has access to all leading insurance companies and can arrange cost-effective cover for you.

For further information, please contact us.