Keyman Insurance

The keyman insurance policy is common among:

• Small businesses or companies with a limited number of employees, especially companies with heavy dependence on the skills and expertise of a single key employee.

• Start-ups where the loss of a key founder or early employee could have a major impact on the company’s future.

• Partnerships, where the death or disability of a partner could trigger buy-sell agreements or cause disruption to the business.

A company may need keyman insurance for several reasons. Some of the main reasons include the following:

• Business continuity: The death or incapacity of a key employee can disrupt a company’s operations.

• Recruiting and training replacement employees: If a key employee dies or becomes incapacitated, the company may need to recruit and train a replacement employee. The keyman insurance policy can provide funds to cover these costs.

• Offsetting loss of revenue or profits: The loss of a key employee can also result in a loss of revenue or profits for a company.

• Attracting top talent: With keyman insurance, a company can assure potential employees that it is committed to protecting the interests of key employees.

• Death coverage: The keyman insurance provides a lump sum payment to the company in the event of the key employee's death.

• Total and Permanent Disability (TPD) coverage: When the key employee becomes completely and permanently disabled, the keyman insurance policy provides a lump sum payment to support the company’s operational continuity.

• Terminal illness coverage: When key employees are diagnosed with terminal illness, the policy offers a lump sum payment to the company.

• Trauma coverage: The policy provides coverage for operational continuity to the company when the key employee suffers a specified traumatic event, such as a heart attack or cancer.

• Business interruption coverage: In the event of a key employee’s death or incapacity of the company to cover the loss of income due to interruption of business operations, the keyman insurance provides coverage to support the business continuity.

The cost of key man insurance will vary depending on several factors, including:

• The age and health of the key employee: Premiums for keyman insurance will generally be higher for older or less healthy key employees.

• The company’s industry and financial situation: For example, a company in a high-risk industry may have higher premiums than a company with less risk potential.

• The size of the company: Larger companies can have a higher premium for a keyman insurance policy with higher coverage as compared to smaller companies.

The companies need to evaluate their specific needs and find the most suitable coverage with an affordable premium price. Get your tailored quote for keyman insurance with Covrzy!

When buying keyman insurance, the company should consider appropriate documentation that complies with regulations and streamlines the underwriting process. The documents needed are enlisted here –

• Proposal form duly filled and signed where the company becomes the ‘Proposer’.

• Keyman questionnaire acknowledged by the company’s authorized representative.

• Complete medical report with required tests conducted on the Keyman.

• IT return record of the last 3 years of the key employees.

• Copies of the Memorandum and Articles of Association with the company.

• A Board Resolution with details such as the Key employees' names along with the sum assured on the life of the key employees and duly signed by the company’s authorized representative.

• Duly certified documents which include audited accounts, balance sheets of the last 3 years, and profit and loss records.

With a customer-centric approach, Covrzy focuses on curating a tailored insurance policy that not only aligns with the industry niche of the business but also integrates the different requirements of your business to secure your futuristic vision. With the keyman insurance policy, Covrzy presents customized coverage that will secure your finances and support operational continuity during the unfortunate demise of your key employees. Covrzy offers a streamlined claims process and guides you at every step from tailoring the policy coverage as per business requirements, initiating the claims process, documentation process, and receiving the policy benefits.

Covrzy’s Keyman Insurance policy provides with:

• Comprehensive coverage with flexible options.

• Affordable policy premium with a competitive market price aligning with budget.

• Expert guidance at every step of the claims process

• Fast settlement of claims to support quick recovery of damages or loss.