Insure your business - people, life and health

Protecting the business - loss of a key person

If your business relies heavily on one or two members of staff, there can be serious consequences for the business if they become ill or die. Small businesses in particular are often dependent upon a key person for generating sales, managing a vital client or are simply reliant upon the key person's expertise.

You can take out a policy, often called key person insurance, that makes a payout to the business should the key person die or, with critical illness insurance, be diagnosed with a serious disease. The amount of money paid out is usually set in advance at a level estimated to be the potential financial loss to the business.

Talk to your independent financial adviser to find out whether key person insurance is appropriate for your business. You can find an independent financial adviser on the IFA Promotion website - Opens in a new window.

Subjects covered in this guide

• Introduction
• Identifying risks and insuring against them
• Basic types of life and health insurance
• Protecting the business - loss of a key person
• Protecting the business - loss of a partner or key shareholder
• Insurance protection for the owner-manager or the self-employed
• Insurance as an employee benefit
• Here's how I've protected my business against the loss of key staff

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