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Business Protection
Key Person Insurance Overview

The success of almost all small and medium‑sized businesses is dependent on a few people who make a significant contribution.

99.3% of business enterprises in 2008 were classed as small, having 0 to 49 employees.
(Office for National Statistics, October 2009)

The chances of one of your senior members of staff dying or falling terminally or critically ill could be higher than you realise. 

In almost any business, there will be a few people who make a major contribution to the company’s profitability. Those people possess skills, experience and expertise that would make them difficult to replace. The loss of a key member of staff could cause your business to lose revenue‑generating ability, contacts and clients who dealt with them personally. The worse case scenario may result in you having to replace them, and that can take time. All of this adds to the problem for a business functioning without all its staff.

How does the Protection work?

A Key Person Protection policy is owned by the business and any payout is paid to the business, which could use the money to recruit or train a replacement or help the business compensate for a reduction in profits until a new strategy is adopted.

Summary of Benefits

  • Protection against a possible fall in gross profits
  • Financial support to pay company loans
  • Financial support allowing the company to recruit the right replacement

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