Business protection

Key Man Insurance

What happens to your business if you lose a key person? Key man insurance protects against the financial impact — replacing lost revenue and giving you time to recover.

What it is

Protecting the business when you lose someone irreplaceable.

Key man insurance — also called key person insurance — is a life or critical illness policy taken out by a business on the life of an individual whose death or serious illness would have a significant financial impact on the company. The policy is owned by the business and pays out to the business.

The payout can be used to replace lost profits during the period of disruption, fund the recruitment and training of a replacement, repay business loans or investor obligations, or provide financial stability while the business restructures. Without this cover, the loss of a key person can threaten the long-term viability of an otherwise healthy business.

The sum insured is typically based on a multiple of the individual's contribution to profit, their salary, or the cost of replacing their expertise and relationships. We can help you calculate the right level of cover and structure the policy correctly for your circumstances.

Who it's for

Any business with people it can't afford to lose.

If your business relies heavily on one or two individuals — whether that's a founding director, lead salesperson, technical expert, or key client relationship holder — you likely need key man cover.

SMEs and owner-managed businesses where one or two people generate most of the revenue

Businesses where a specific individual holds critical client relationships or technical expertise

Companies with bank lending that requires key person cover as a condition of the loan

Directors or partners looking to protect the business against their own unexpected absence

Growing businesses looking to safeguard a period of investment or scaling

Why use a broker

Structure matters as much as the sum insured.

Key man insurance requires careful structuring to ensure the benefit is paid to the right entity, treated correctly for tax, and sized appropriately for the risk. Getting this wrong can mean a policy that doesn't respond as expected — or creates an unexpected tax liability.

CompanyPMI will help you structure the policy correctly, search the whole market for the best available terms, and ensure the cover remains appropriate as your business grows and changes. We manage the policy on an ongoing basis — at no cost to your business.

Protect your business against the unexpected.

Tell us about your business and key people and we'll recommend the right level of cover across the whole market.

Get a quote