Key Person Insurance - Stonebridge Rock

Protect your business today with Key Person Insurance

Whatever the nature of your business, however many people you employ, and however successful you are, the chances are that, in one way or another, the running of your organisation will depend heavily upon a key individual (or individuals).

If there is anyone within your business who is depended upon to design products, drive new business, or provide any other specialist skills that are essential to the daily running of your organisation, then losing them is likely to have a substantial impact upon the success and profitability of your business.

This is where a Key Person insurance (previously known as Key Man Insurance) policy comes in – allowing you to protect your business against the loss of a key staff member, covering any potential lost revenue as well as the costs of finding and training a replacement staff member.

Of course, if death or critical illness strikes one of our key employees, a policy cannot replace them or their input.

It can, however, provide reassurance and security that, should the worst happen, your business will be protected financially against any short-term impact.

Key Person Insurance FAQ's

What is Key Person Insurance?

Key Person insurance is a life insurance policy that covers the key person (or people) within an organisation or business. This could be the owner, the founder, or an employee who is the only person within the organisation able to complete their role. Simply put, a Key Person is anyone who is absolutely crucial to the company and whose absence would have a major impact upon the business.

The policy is designed to protect a business in the event that a key member of staff either passes away or suffers from a critical illness and is unable to continue working. Unlike personal life cover, the business is the beneficiary in the event of a claim being made against a Key Person insurance policy.

Does my business need Key Person Insurance?

That all depends upon the size, structure, and nature of the business – it is definitely worth considering if your company relies heavily upon an individual, or a handful of individuals.

For example, if you are a sales company then the loss of a sales director or manager could have a considerable impact on profits, so covering this individual with a Key Person insurance policy would be wise.

Who should I/my business cover with Key Person Insurance?

This isn’t an easy question to answer – after all, your business and its needs are completely unique and you need to ensure that investing in a Key Person insurance policy is worthwhile and effective. Key Person insurance allows you to insure any of your key staff members – they don’t need to be shareholders or directors; they simply need to be crucial to the effective running of your business.

Do sole traders need Key Person Insurance?

If you are a sole trader or an entrepreneur and your business is made up of you, and only you, then you don’t need Key Person Cover (if anyone depends upon your income, however, you should look into personal life insurance to cover that)