â€śBehind every successful business there is an individualâ€ť.
Acronym to remember the Concept of â€śKEYMAN INSURANCEâ€ť [i.e insuring the key person of the organization to compensate for the loss that may accrue to the company due to his absence or inability to execute the work to his full capacity.]
Knowledge and special skill set possessing individual Either as promoter/director or employee who creates, drives and Yokes the Main and major Activities of the organization/office/corporation/company so nicely that he becomes very important and indispensable and thus the company needs to make sure that his/her utility is really anchored at least financially and at No Cost must the Company suffer due to the Extended period when a key person is unable to work.
Who deserves the keyman insurance cover ?
The keyman insurance thus covers the individual who does either one or all the following activities. The keyman opens the doors to a new business, he unlocks the plans to ensure profitability and locks in securely the stability of the business. In all these avatars he is plays a key role.
Compensation for the lost contribution from the Keyman:-
Loss due to period when the keyperson has not been able to work due injury, ill health etc and thus leading to revenue loss to the company. The company can use the amount to not only offset the loss but also recruit and train new staff temporarily.
Compensation for the lost business:- loss due to delay and cancellation of any business project or sale of a product because of the absence of the keyman.
Compensation for the lost guarantees :-loss due to demand by lenders of loan or financial assistance that the company has acquired based on the personal guarantee of keyman insurance.
Compensation for lost industrial relations :- sometimes the keyman may be the person who because of his charisma or unique Human relations techniques may be vital in holding the employee , employer relationship in good terms and enable organization to run smoothly.
Compensation for lost production :- sometimes the keyman may hold the special technical skill set which is vital for the manufacture of certain specific products. When he is unable to discharge he work or pass on the technical know-how in short duration to others the production comes to a halt and results in loss to company.
The keyman insurance thus covers the individual who does either one or all the following activities. The keyman opens the doors to a new business, he unlocks the plans to ensure profitability and locks in securely the stability of the business.
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