Key Person Cover

Who is a Key Person?

This is any member of staff who has a direct impact on the business’s profits. It could be the business owner, director, sales person or any employee with specialist skills or expertise.


Losing a key person can be disastrous for the long-term survival of a business. Although clients can’t predict the future, Key Person Cover can protect against the following business risks:

Protect Profits:

  • Recruitment costs to find a suitable replacement
  • Loss of profits whilst the business is disrupted
  • Paying penalties for non or late delivery on goods and services
  • Paying any company sick pay to the key person if the claim is related to a critical illness

Protect Debts:

  • Being unable to repay a loan
  • Paying back a business overdraft
  • Nervous suppliers may demand payment of an account up front
  • Covering owed salaries, dividends or loaned money through a director's loan account
  • Key Person Cover can protect sole traders who are personally liable for business debt. If they died expectantly, any debt would be inherited by their next of kin.

Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

Contact Us

To find out about how we can help you manage your wealth please get in touch and we can arrange a meeting initally on Teams