Key Person Cover

Key person cover represents a set of insurance solutions which, in Insurance Link Manawatu’s view are not taken up as widely as they could be, whether down to a lack of knowledge about their existence or misunderstanding about their use.

Key person cover can take on lump sum and / or monthly ongoing forms of compensation, the difference being that it is the business that is the owner, payer and beneficiary rather than an individual. This represents a great toolkit for business owners or directors whose short or longer-term absence from the business would have a severe impact on its revenue and performance.

Options include monthly ongoing compensation to cover either a loss of revenue or perhaps the cost of hiring a locum in the event that a key person cannot work, whilst lump sum covers can be geared towards the permanent loss of a key person, which might trigger a buy / sell agreement in the business.

Specialist products are available for farming and agricultural business which reflect and allow for fluctuating seasonal income, and for startup businesses which may not necessarily have a record of accounts available at an early stage.