Key Person (Business) Insurance:

A good overview is:

What would happen to your business if one of your key people were to become critically ill or die? The unexpected can happen and the impact on your business could be damaging and permanent.

When business owners are asked what business or partnership assets are insured they always list their premises, plant and machinery, vehicles, computer equipment and so on. They recognise that cover is required for the cost of replacement, potential loss of profits and ultimately to minimise any business disruption. However, what could happen to the business if a key employee, partner or proprietor were to die or become critically ill? The cost to the business could be devastating. Consider for example the sudden death of the head engineer when the business is in the process of tendering for a major project. Their death could result in the loss of that contract which may be critical to the future survival of the business.

Who is a key person?

A key person is someone whose death, critical illness or disability would have a serious effect on the future profits of the business. In any given business a number of people could be regarded as “key” including the partners, senior employees or the proprietor, in the case of a sole trader.

Ask us to perform an assesment of your potential needs.