Key Person Cover to Protect Your Business
What Is Key Person Cover?
Key person insurance protects your business against the financial impact of losing a key individual, whether through death or critical illness. If that person generates significant revenue, holds key relationships or has specialist knowledge, their absence could seriously affect the business.
The policy pays a lump sum to the business, which can help cover loss of profits, recruitment costs, replacement costs, business disruption and cashflow pressure while the business adjusts.
Who May Be Classed as a Key Person?
A key person could be a founder, director, senior salesperson, or any employee whose skills, knowledge or client relationships are difficult to replace. Growing businesses, limited companies and partnerships often rely heavily on one or two individuals, making key person cover an important consideration.
How Much Cover Is Needed?
Cover can be based on the key person's contribution to profit, their salary, any business loans they're connected to, or the estimated cost of finding and training a replacement. We'll help you work through these factors to arrive at a suitable level of cover for your business.
Tax Treatment
Tax treatment of key person cover can depend on how the policy is set up and what the cover is intended to protect. We will explain the general position and recommend you speak to your accountant or tax adviser about your specific circumstances.
Key Person Cover FAQs
Ready to Protect Your Key People?
New to business protection, or reviewing arrangements you already have? We'll talk you through the options and recommend what genuinely suits your company.
Review My Key Person Cover
Tell us about your business and we'll be in touch to discuss your options.