Key Person Protection

A "key person" is a person who is critical to the continuance of your business. Typically, they will be one or more of the following:

  1. Company director or owner: The person who steers your business.
  2. Designer: The person whose creative flair generates new products.
  3. Salesperson: Your critical conduit to the marketplace.
  4. Strategist: The person who provides the drive and direction for the company

Without one or more of these critical people, your business could struggle. You may find that its direction and control has been lost. Your ability to get product to market could be affected. You could lose market share to your competition. Ultimately, you could lose sales, turnover, profit, and the viability of your company.

Key person insurance and shareholder insurance are designed to help you overcome the effects of losing one or more of your key staff. This provides an income stream to your company whilst the person is incapacitated, or while you are recruiting or training a new staff member.

Your business is very important to you and the other owners of the business. Often a successful business is dependent on a single person. Is yours?

  1. What would happen if this "key person" were to fall ill?
  2. What would happen if your key person were to suffer long term illness?
  3. Alternatively, even worse what would happen if your key person were to die?
  4. Will the future of your company or business be uncertain between success and failure?

Key person protection and shareholder insurance will not prevent the loss of crucial people in your organisation, but these insurances can help your business recover during the period when your key personnel are not able to work, or to train or recruit a replacement.

The key person protection falls into two broad categories: protecting your key personnel and protecting your profits. This is the same whether you are a Limited company, a partnership or a sole trader.

You have insurance on your buildings, public liability insurance. You are protected from fire and accidental damage to your property, so why not insure your most valuable company assets your key staff members?