Key Person Cover
Employers must have insurance to cover accidents involving employees at work. But what if something happened to your management team? Key person insurance allows businesses to protect against the financial loss they could suffer as a result of the death or critical illness of an important person in the company.
Who is a key person?
A key person is an individual whose skills and knowledge contribute to the continued financial success of a business. For example:
• managing director or CEO
• marketing manager
• IT specialist
Anybody whose death or absence could lead to financial loss for the business could be considered ‘key’.
As a business you will need to prove that an employee is a key person by showing that you stand to suffer a financial loss as a result of the death, terminal or critical illness of that employee.