Is Keyman Insurance Relevant?

In this age of the Coronavirus Pandemic, more people are looking at their mortality and what to do if they die.  (See previous Blog)

But I have had a really interesting conversation with a vendor recently.  He was selling a practice where the buyer had offered to pay three tranches over two years.  This is the most usual way for a buyer to buy and a seller to sell, with practices with GRF between £100k and £500k.  There are many ways in which a deal can be structured, and I would be happy to discuss that with anyone should they want to contact me. See contact details below.

The vendor was worried about what would happen if the buyer died during the payment term.  I suggested he look into taking out some Keyman insurance on the buyer for the amount owed.   I believe there is insurable interest there and the policy would be a short-term assurance for two years.   The proceeds of the policy would be passed over to the vendor should the buyer die. 

This is rarely discussed when selling fees, but I think it should be a topic of conversation between all vendors and purchasers, especially when larger accountancy fees are being sold. 

I would welcome comments from anyone who has done this before so that I can discuss their experience. 

Please feel free to contact me should you wish to discuss your own situation.  We have brokered over 320 deals, so have a lot of experience in this marketplace.  Everything discussed is totally confidential.  You can contact me, Nicola Draper, on 01788 816440 or email me at