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Why Key Person cover is important

Watch the video to find out how you can protect the future of your business

Protecting key people should be an essential part of any business plan. You probably already protect many of the important things that keep the business running smoothly, like property, fleets and stock. So it makes sense to insure your most valuable assets: your staff and business owners.

This short video helps explain why this type of insurance is important and can help you identify your key people.

To find out more about Key Person cover, please speak to your financial adviser.


Business as usual can suddenly become very difficult if one of your key employees, someone the business heavily relies on, dies or suffers a serious illness.

How long could your business survive without them?

Different types of businesses will have different key people.

They could be your best performing sales person, a software engineer, one of the business owners.

And the risks associated with losing a key person can include:

  • production being stopped
  • sales targets being missed
  • the loss of important business contracts
  • the business might have to pay large penalties if goods or services aren't delivered
  • and your bank might lose confidence business loans can be repaid and demand the debt is cleared

Key Person cover is a type of insurance that can protect the survival of your business.

It pays out a lump sum if your key employee dies or is diagnosed with a critical illness.

You can use the money to:

  • make up any loss in profits and keep the business running whilst you're looking for a replacement
  • help cover recruitment costs
  • or clear business debt that would have to be repaid due to the loss of the key person

Key Person cover can give your business the breathing space needed during a period of instability and uncertainty.

To find out more, please speak to your financial adviser.

LV=, County Gates, Bournemouth, BH1 2NF, UK