Far too many companies throughout the UK do not have a key man insurance policy in place. These companies leave themselves totally open if something happens to one of their key workers. Many companies that go bankrupt or cease trading are down to losing an important person within the company either through death or critical illness. Although a company can have lots of people employed sometimes there are just those people who are more valuable than others. Employers are always quick to insure all their important equipment, machinery or company cars for example. But forget to insure the main cogs within the wheel, the key people.
Key worker insurance can be taken out at any time while the employee is working for the company. The company can set up the policy in different ways either through a trust or by setting the owner as the company. Of course a company can only own a policy if the business is Ltd or an LLP. Partnerships and sole traders are dealt with in a slightly different way. The business pays the premiums on monthly or annual bases from the company bank account. The premiums are tax deductible as they are seen as a business cost. Any claim or benefit paid out as a result of a claim is also paid to the company. Key man insurance tax treatment varies a lot between different companies and we would always suggest you speak to a tax expert before taking out a policy.
A key worker does not always have to be an employee. It could even be a contractor or short term employee. Sometimes companies will employ the services of another company where there are certain key people. In this case you will sometimes have companies taking out a key man insurance policy on another company and its employees.
So rather than wait and see what happens, protect your business today and get a quote for key man insurance. You can speak to one of our qualified advisors or fill in your details in the form at the top right of this page. We are whole of market brokers and are able to get the lowest cost key man insurance quotes in the UK. Please do not hesitate to contact us if you have any questions or would like more information or advice on business protection.
Information regards to taxation levels and basis of reliefs are dependent on current legislation. Individual circumstances are not guaranteed and may be subject to change. The Financial Services Authority do not regulate trusts.