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.