Business Protection

Key person cover is a plan taken out by a company on the life of one of its key employees such as an owner, senior director, sales person, or employee with specialist skills or knowledge. Most businesses have certain key individuals who are mainly responsible for a large part of their profits. Losing one of them can have a serious impact on the health of the business.

This type of cover is a part of business continuity plan. It is designed to protect the profits of small and medium size companies in the event of death or severe illness of their key employees. If the key person were to die or suffer from a severe illness, the policy pays a lump sum to make up for any loss in revenue or profits, helping to keep the business on track.