Keyman Insurance Audits
An independent review of keyman and promoter cover, tested against the actual value a business stands to lose, not against a policy someone was sold.
Keyman cover is usually sized wrong.
Most keyman policies are sized to a round number, or to whatever limit an insurer offered, rather than to a defensible calculation of what the business actually loses if a key promoter or executive is no longer there. Sum assured drifts out of date as the business grows. Ownership and beneficiary structure is often set up without reference to how the payout is meant to be used, whether that is business continuity, buy-sell funding, or loan covenant support.
A structured review, not a product comparison.
- Whether existing sum assured reflects current enterprise value, not the value at the time the policy was bought.
- Ownership and beneficiary structure, checked against how the payout is actually meant to be used.
- Overlap or gaps across multiple policies where a promoter holds more than one keyman or business-linked cover.
- Alignment with buy-sell agreements, shareholder agreements, or loan covenants that reference the cover.
- Tax and structuring treatment of the premium and payout under current rules.
A written finding, not a recommendation to buy.
The audit ends with a written report: what the review found, what is misaligned, and what a defensible structure would look like. You are free to act on it with any broker or insurer. Arcus does not place insurance and earns no commission on the outcome.
For a conversation about a keyman insurance audit.
contact@arcusadvisory.in