Sandton Key Man Insurance
Key Person Insurance

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Key person disability insurance and the proprietor

Posted by deon.keyman on December 19, 2012 at 2:55 PM Comments comments (0)

Key person disability insurance is the key to the proprietors ongoing financial success , as it insures that you will get compensated even if there is a serious disease , like your partner ( key man ) disability , if he gets disabled , or have a heart attack etc .

The dilemma with all new organisations is that you do a great deal of work first , for which you will get remunerated later when the business is successful - this is where the risk lies ! This is why you ought to get key person disability insurance to cover you in this daunting situation , in a lot of the cases this will make the difference between your business's survival or insolvency .

As the owner when you are attempting to spot the key person , most of the time it will be obvious but if you really can't recognize him - then you are the key person !

The first step in being able to attain key person disability insurance is a great business plan , yes the same one you will need for the bank for financing etc . As this will determine the potential value of the key person , and the business .

One of the building blocks to be able to get key person disability insurance is that you must be able to prove a loss on your side if your key person should become disabled .

Situations where key person disability insurance should be considered is :


  • Business Partnerships ( as soon as you can afford it )
  • New businesses and organizations
  • Professionals that is original and which can not be substituted
  • Colleagues that is unique and which can not be replaced
  • Creditors - people that owe you a lot of money ( do you want to claim it from their estate ? )
  • Shareholders - do you want to negotiate with their spouse , or have the spouse as a business partner ?



Then preferably you want a lawyer insurance broker combination to help you put all of the key person disability insurance in place , as in a significant of cases there are business contracts that must be put in place and most of the time it is not at all that evident what to do . One contract neglected can have a detrimental effect later !


So as you can see key person disability insurance is an essential part in managing your businesses risks , and sometimes your own risks in the process , if you have any questions don't hesitate to call , or follow this link to my website :