As a business owner or director, key person protection is important to help safeguard your business. This is an insurance cover that provides funds to help the business to continue operating, should a key person die or become critically ill.
Small businesses, in particular, will benefit from key person protection, as usually there are one or two significant people who the business relies on to succeed. The loss of a key person in a young business could be detrimental to its culture which may not be established enough to withstand the setback without the supportive funds needed to get the new business back on its feet again.
A key person is an employee whose absence would affect profits and those whose experience is important to the future success of your business. The cover provides a lump sum cash pay-out which you may need to help find a suitable replacement.