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Key Person cover is life insurance (which can also include critical illness cover) taken out by the business on the life of someone key to the firm’s financial performance.
A key person is an individual whose skill, knowledge, experience, or leadership, contributes significantly to the continued financial success of your business. Key persons may include:
- Owners
- Managing Directors
- Sales Directors and Managers
- Finance Director/Controller
- Technical Experts
- Individuals with specialist skills
What issues do you face losing a key person?
Put simply, it can be disastrous for your business’s survival.
A loss could leave you without the vital skills, knowledge, and resources needed to keep driving your business forward and you could expose yourself to a range of vulnerabilities, such as:
- Loss of profit and earnings
- Delays for a new product launch or unable to meet existing client deadlines
- Loss of loan facilities or the inability to make payments
- Suppliers may demand immediate payment
- Significant costs required to recruit a replacement
- Customers could go elsewhere
How can Key Person Insurance help you?
Key Person cover can give your business the breathing space and security needed during a time of instability and uncertainty.
In the event of a claim, the proceeds from the policy provide a cash injection which could, for example, allow you to offset losses of sales, hire a new individual, or even cover recruitment costs; all of which help the business continue to operate throughout a challenging time.
Get in touch
If you would like to discuss your business needs and how this type of cover could help provide security for your business, please get in touch by completing the form below.