What Is Keyman Insurance?
Keyman Insurance is a life assurance or specified illness policy taken out by a business on the life of a key employee or director. The business pays the premiums and receives the benefits if the insured person passes away or becomes seriously ill.
It is designed to:
- Replace lost profits
- Cover the cost of recruiting or training a replacement
- Protect business loans personally guaranteed by the key individual
- Maintain confidence among clients, lenders, and investors
Why Irish Businesses Need Keyman Protection
At Fortis, we don’t just sell policies — we craft strategies. Our approach includes
Safeguard Cash Flow
The loss of a key person can slow operations, delay projects, and reduce revenue. A lump-sum benefit provides immediate liquidity, helping the company stay on track during a difficult transition.
Protect Against Director Guarantees
In Ireland, many SME loans and credit facilities are personally guaranteed by directors. Keyman Insurance ensures the company can repay outstanding debt without jeopardising the business or the director’s family.
Reassure Stakeholders
Investors, banks, and strategic partners take comfort in knowing that the business is protected from unforeseen disruptions. Keyman cover demonstrates responsible risk management.
Strengthen Succession Planning
Key executives often hold vital knowledge, client relationships, or strategic expertise. Keyman cover gives the company the financial space to recruit, train, and integrate new leadership without compromising stability.
Support Business Continuity & Valuation
Businesses with adequate risk protection often achieve higher valuations. For owners planning a future exit, Keyman Insurance helps safeguard the company against value erosion.
Who Should Be Covered?
A key person could be anyone whose absence would create a significant financial impact. Examples include:
Founders and managing directors
Chief financial or technical officer
Sales leaders responsible for major accounts
Specialists with unique skills or qualifications
Individuals who personally guarantee loans or investments
We help identify who truly qualifies as “key” within your organisation.
Tax Treatment in Ireland
The tax treatment of Keyman Insurance depends on how the policy is structured and the purpose of the cover. Premiums may be deductible in certain circumstances, but proceeds may be taxable. We work alongside your accountant to ensure your policy is set up correctly and efficiently.
Business risk assessment
Identification of key individual
Policy design and insurer comparison
Advice on tax considerations
Integration into your broader business-protection strategy
Secure Your Business Today
Your people are your greatest asset. Protecting them means protecting your business.
Contact us today to discuss Keyman Insurance and find the right level of cover for your company.
Are you confident your retirement plan will give you the lifestyle you deserve?
If something unexpected happened tomorrow, would your family be financially secure?
Providing clarity on frequently asked questions
What is Keyman Insurance?
Keyman Insurance is a policy a business takes out on a key employee or director. The company pays the premiums and receives the payout if that person dies or becomes seriously ill.
Why do businesses need Keyman cover?
It protects against lost profits, operational disruption, recruitment costs, and outstanding business loans personally guaranteed by key individuals.
Who qualifies as a “key person”?
Anyone whose loss would financially impact the business—such as founders, directors, major account managers, specialists, or anyone guaranteeing company loans.
Is Keyman Insurance tax-deductible in Ireland?
Tax treatment varies based on the policy structure and purpose. In some cases premiums may be deductible, but payouts may be taxable. Professional guidance is recommended
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