KEY MANINSURANCE.

Key man insurance (also called key person insurance) is a life or critical illness policy taken out by a business on the life of a critical individual — a founder, a top salesperson, a technical expert — with the business as the beneficiary.

If that person dies or suffers a serious illness, the policy pays a lump sum directly to the business. That money can be used to cover lost revenue during the replacement period, fund recruitment costs, repay a director's loan, or stabilise the business while it adapts.

The sum insured is typically based on a multiple of the key person's salary or their contribution to revenue. We advise on the appropriate level of cover and search the full market for the best terms.