Business Protection

Key Person Protection

The loss of a key person could have a devastating effect on your business

You would probably find it unthinkable not to have insurance protecting your business contents from the effects of a fire or a burglary.

However, the effect of losing one of your key employees within the business could be much more difficult to recover from.

Proper cover is vital to help your business recover quickly and minimise the effect on your profits should an unfortunate event happen.

Key person insurance can compensate a business for loss of profits on the death, critical illness, or disability as a result of sickness or accident of an employee.

The financial impact may include: -

The key person(s) are likely to be directors, senior managers, sales staff, research & development specialists, etc.

Key person insurance is designed to protect your business against loss of profits. It is the business that will suffer loss and should be insured against it.

As with any insurance it is important that the proceeds are in the right hands at the right time.

Key Person Protection benefits

Limited Companies

If you are a company, the usual way to set up cover is to have the company take out the policy (as plan owner) on the life of the key person. It is possible to arrange life insurance, income protection and critical illness policies in this way.


If you are a partnership, it means that it is not possible for the partnership to own the policy, unless it is a limited liability partnership (LLP).

A solution to this is to have one or more partners take out an insurance policy and hold it on trust for all the partners in the firm. If the key person is a partner they can take out the policy on their own life and place it in trust for the other partners.