Key Person Protection

People are important

There’s nothing mysterious about key person cover. Put simply, it insures a business’s key people in case they die, become critically ill or find themselves unable to work due to long-term sickness.

The success of almost all small and medium sized businesses depends on a few people who make a significant contribution. So making sure the business is covered in the event of their death or serious illness is a fundamental step.

What is key person protection?

What would happen to your business if you or another key person were unable to work due to illness or injury?

Just some of the consequences of losing a key person:

Sales could fall

New products could be delayed

It could rock the confidence of your lender, suppliers, customers and your other employees

Loans may be called in

Suppliers may demand payment up front

Customers may choose to go elsewhere

Without the leadership of you and/or your key person, your employees may decide it’s time to move on

Who are the key people?

The key person may be you, the person whose vision created the business. It could be the sales manager, whose contacts and relationships with customers make sure that sales stay on target and the business is profitable.

Often a person’s value to your business is reflected in their remuneration package. So that’s a good place to start when you’re trying to identify your key people – although this might not always be the case.

The key people might be:


Managing director

Sales director

Finance director

Product designer

Production manager

Specialist staff

Technical staff

With key person protection you can either insure your key people and receive a lump sum, or you can choose Key Person Income Protection which will pay you an income each month to cover the amount of profit the key person would have been bringing into the company. This will help you continue to pay the monthly loans, utility bills and running expenses.


Find out more about protecting your people. Contact us now for a FREE consultation.

Contact Us Now

“Half of being smart is knowing what you are dumb about.”

Solomon Short

Ablestoke’s Registration Number is: OC367708 and Place of Registration is: England. The Company Registered Office is : Admirals Offices, Main Gate Road, The Historic Dockyard, Chatham, Kent, ME4 4TZ.

Ablestoke Financial Planning LLP is an appointed representative of Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited, which is authorised and regulated by the Financial Conduct Authority. Intrinsic Financial Planning Limited and Intrinsic Mortgage Planning Limited are entered on the FCA register ( under reference 440703 and 440718.

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

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