Key person insurance

What would happen to your business if you lost a key employee tomorrow?

When a key person within any business dies or is diagnosed with a critical illness, it can have a devastating financial effect, leading to loss of customers, damage to market reputation and reduced confidence from creditors.

In fact, according to recent research:

  • 53% of business would cease trading in less than 12 months following the death/illness of a key person
  • 26% are not aware that a Directors Loan Account needs to be repaid on death
  • 60% estimate that it would take up to a year to find a replacement

Key person assurance pays out a cash injection to help replace loss of profits, repay business loans and/or assist in the hiring of a suitable replacement. It can literally be the difference between a company going under or continuing to trade – and premiums are typically fairly low.

Who is a key person?

An individual whose skill, knowledge, experience or leadership contributes to the financial success of the business. Examples are:

  • Chairman / Managing Director
  • Marketing Manager
  • IT/Technical specialist
  • Sales Manager
  • R&D specialist

The impact on a business

  • Drop in sales and profits
  • Loss of confidence from suppliers, clients, creditors and other employees
  • Loss of market experience and connections
  • Requirement to re-pay a Directors Loan
  • Difficulty in securing new finance
  • Need for recruitment costs

Get in touch

General enquiries

0800 4880 989

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COVID-19 enquiries

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Healthcare Concierge member enquiries

01606 352500

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