As its name suggests, Keyman Insurance is a form of life insurance that protect a "key" member of a given business. Keyman Insurance policies are created to provide financial protection should a key member unexpectedly fall seriously ill or even pass away. For this reason, Keyman Insurance is an essential policy for any Australian business which relies heavily on 1 or 2 key employees, possesses partnerships with substantial business valuations or has a business loan or credit or debt facilities.
Keyman Insurance policies fall into 3 categories:
Revenue protection is designed to ensure any loss of revenue accrued through the unexpected loss of a key member of a business is compensated up until the time a suitable replacement is found and business may proceed as normal.
Capital protection provides cover for the key person of a business who acts as the business guarantors. This ultimately means that the remaining partners or shareholders will be provided with access to the necessary funds to repay any outstanding business loans should the guarantor be unable to provide collateral due to ill health or death.
Buy Sell Insurance provides the remaining shareholders or partners with the ability to buy out the shares of the key employee should they no longer be able to continue in the business as a result of unexpected death or injury.
If you would like to discuss your business insurance needs, please call one of our friendly advisers at Rate Detective today.