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Can I Reclaim Key Man Insurance


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I was forced to take out Key Man insurance by Lombard Group for 2 business loans which have now been paid off. The loans were for equipment used to carry out surveys.

 

I am the director of the limited company (just myself & wife as company secretary).

 

Has this been mis-sold & is this something I should look at reclaiming? Works out at around £1500.

 

Many thanks for any help or advice.

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I assume the loans were to the company?

 

Did the company have the means to repay the borrowings should anything happen to the people covered by the policy?

 

It is not unusual for lenders to a business to require some form of protection which could take the form a director's personal guarantee or, as in this case, Key Man Insurance.

 

I think you would have to show that there was no need for it because the loans could be covered by other means within the company before you think about a claim for possible mes-selling.

 

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