Key Person Insurance
Protect your business from the financial impact of losing a key employee, director or founder.
FCA Regulated
Extensive Lender Panel
Based in Uxbridge
UK Wide Coverage
24hr Response
5★ Reviews
Key person insurance (also called key man insurance) provides your business with a lump sum if a key individual dies or is diagnosed with a critical illness. This money can be used to cover lost profits, recruitment costs, repay business loans or maintain cash flow while the business recovers.
What Key Person Insurance Covers
- Death of a key employee or director
- Critical illness diagnosis of a key individual
- Lost revenue and profit during the transition period
- Recruitment and training costs for a replacement
- Repayment of business loans that relied on the key person
Who Is a 'Key Person'?
- Company founders and directors
- Sales directors or individuals responsible for major client relationships
- Technical experts with specialist knowledge
- Anyone whose absence would significantly impact revenue
Frequently Asked Questions
Is key person insurance tax-deductible?
In many cases, yes. If the policy is taken out to protect against loss of profits (rather than to protect a loan or asset), the premiums are usually an allowable business expense. HMRC guidance applies. We recommend consulting your accountant.
How much key person cover do I need?
A common approach is to insure for a multiple of the key person's salary (typically 5–10 times) or based on the estimated financial impact of their loss. We'll help you calculate an appropriate level of cover.
Can key person insurance cover critical illness?
Yes. Most key person policies can include critical illness cover, so the business receives a payout if the key person is diagnosed with a serious illness and is unable to continue working.
Ready to Get Started?
Speak with one of our expert advisers today, initial consultation at our expense, and without obligation.