Key person insurance protects your business against the financial loss of a critical individual — such as a director, founder, or top salesperson. The policy is owned by the business and pays out a lump sum if the insured person dies or is diagnosed with a critical illness. We'll match you with a specialist adviser who can design the right arrangement.
Who needs key person protection?
If your business depends on specific individuals whose loss would directly affect revenue, operations or client relationships, key person protection is essential.
- Business owners and company directors
- Businesses with key employees who'd be difficult to replace
- Companies where a specific person generates a significant proportion of revenue
- Businesses with commercial debt secured against a key individual
What the payout can be used for
- Covering lost revenue while a replacement is found and trained
- Funding emergency recruitment costs
- Maintaining supplier and client confidence
- Servicing commercial loans or overdrafts
- Keeping the business operational during a difficult period
How key person cover is arranged
The business takes out a life insurance and/or critical illness policy on the key individual. Premiums are paid by the business. The sum assured reflects the individual's contribution — based on their revenue generation, specialist knowledge and the estimated cost of replacing them.
What you might need to hand
- Details of your business structure and key personnel
- Financial information (turnover, profit and the individual's contribution)
- Details of any existing keyman or business protection policies
- Details of commercial debt