Who is a Key Person?

This is any member of staff who has a direct impact on the business’s profits. It could be the business owner, director, sales person or any employee with specialist skills or expertise.

Losing a key person can be disastrous for the long-term survival of a business. Although clients can’t predict the future, Key Person Cover can protect against the following business risks:

Protect Profits:

• Recruitment costs to find a suitable replacement
• Loss of profits whilst the business is disrupted
• Paying penalties for non or late delivery on goods and services
• Paying any company sick pay to the key person if the claim is related to a critical illness

Protect Debts:

• Being unable to repay a loan
• Paying back a business overdraft
• Nervous suppliers may demand payment of an account up front
• Covering owed salaries, dividends or loaned money through a director's loan account
• Key Person Cover can protect sole traders who are personally liable for business debt. If they died expectantly, any debt would be inherited by their next of kin.