Safeguard your company’s future with financial protection if a crucial team member becomes critically ill or passes away. We help you identify risks and put the right cover in place.
46%
of UK businesses would fail if a key person died or became ill
98%
average claims payout from leading UK insurers
5.5M
SMEs in the UK – 99.9% of all businesses
FCA
authorised & regulated
What Is Key Person Insurance?
Key person insurance is a type of business protection that provides your company with a cash lump sum if someone crucial to your business dies or is diagnosed with a critical illness. The policy is owned by the business, and the payout goes directly to the company rather than to the individual or their family.
This financial safety net can be used to cover recruitment costs, replace lost profits, repay business loans, or simply provide breathing room while you reorganise. For many SMEs, losing a key individual could mean the difference between survival and closure.
The average age for a critical illness claim in the UK is just 47, and someone under 65 is more likely to suffer a heart attack than to die. With nearly 1 in 2 people born in the UK being diagnosed with some form of cancer during their lifetime, protecting your business against these risks is essential.
Why Key Person Insurance Matters
Financial Stability
The sudden loss of a key person can devastate your bottom line. A cash injection provides vital stability while you adapt and recruit replacement talent.
Loan & Debt Protection
Many business loans require key person cover as a condition. The payout can settle outstanding debts and maintain your creditworthiness with lenders.
Recruitment & Training
Finding and training a suitable replacement takes time and money. Cover typically provides 3-5 years of salary to fund this process properly.
Maintain Confidence
Suppliers, clients and investors need reassurance. Having protection in place demonstrates sound business planning and maintains stakeholder confidence.
Tax Efficiency
When structured correctly, premiums may be an allowable business expense and offset against Corporation Tax, making protection more affordable.
Flexible Cover
Choose life cover only, or add critical illness protection. Policies can be tailored to your specific business needs and budget.
Who Is A Key Person?
A key person is anyone whose death or serious illness would significantly impact your company’s profits or operations. This might include:
- Founders and directors who drive the business vision
- Sales leaders responsible for major client relationships
- Technical specialists with unique skills or knowledge
- Key project managers overseeing critical contracts
- Anyone with industry connections that couldn’t easily be replaced
Who Is It For?
Key person insurance is suitable for:
- Limited companies of any size dependent on specific individuals
- Partnerships looking to protect against the loss of a key partner
- Businesses with outstanding loans where lenders require protection
- Companies tendering for contracts where key personnel are specified
- Startups and SMEs heavily reliant on founder expertise
- Any business where one person’s absence would cause significant disruption
1 in 5
Men face a career-ending illness before retirement
60%
of UK businesses fail within 5 years
£22M
paid out daily by UK business insurers