Key Person Insurance Cover

Key Person Cover provides cash at a time when it's most needed.

Key Person Cover

Case Study.

The basic need (and basic solution) for Key Person Protection.

In every office, shop or factory in the country there is a notice proclaiming that the employer has taken out insurance to cover accidents to employees' at work. Every car or lorry owned by a business has to have at least the minimum level of insurance required by law. Most prudent business people will have arranged for insurance on the factory, office buildings, even on the desk at which they work.

But one valuable business asset is often left uninsured. Zurich believes that too few businesses across the UK have any insurance to cover the one eventuality that can literally mean the end of the business and the income it provides – the death or illness (including critical illness) of a Key Person (often called Key Man).

Whether the business in question is a partnership, a Limited Liability Partnership, a company, or even a sole trader, it is likely to have an individual, or individuals, crucial to its continued activities and prosperity. Here is an example:

John is a successful businessman. He’s worked hard to build up his small, but profitable, manufacturing business that is run as a Private Limited Company. It’s recently expanded very fast, taking on new staff and installing a new IT package to help with financial management of the company. The bank has been very helpful and provided a temporary overdraft while the expansion takes place. Though he has fellow directors to share the load, John is the main shareholder and still spends long hours doing much of the work himself. He still deals with many of the business’s clients' on a personal basis.

Why John is a Key Person.

  • •  John’s staff rely on him for his experience.

  • •  John is, directly and indirectly, responsible for the majority of the business income.

  • •  His clients' trust him to meet their needs.

  • •  His suppliers' know that whilst he’s around, they will be paid.

  • •  The bank knows that whilst he’s around, its money is safe.

So, whilst the business runs as a company, it still has many of the practical characteristics of a sole tradership.

Some Potential Issues.

If John were to die, or suffer a serious illness needing time away from the business, what would happen to the business?

  • •  Staff could leave, fearing their jobs are at risk.

  • •  Valued clients' could be lost to rivals.

  • •  Suppliers' might require payment in advance.

  • •  The bank could call in the overdraft.

  • •  Revenue and profits would fall.

Potential Solution.

All this could be prevented if a suitable protection plan, or plans, existed to provide cash at a time when it’s most needed. This could enable the bank to be repaid, provide salaries and pay suppliers, replace lost revenue and perhaps even provide a temporary replacement for John (though he may be very difficult to replace!).

This would provide time. Time to build up the business again, or maintain its position and reputation, possibly while a buyer is found.

Read more about: Key Person Cover.

If you are interested in more information about Key Person Cover - please use the secure form below and we will contact you within 24 hours. We will discuss making arrangements for a selected Financial Adviser to connect with you. We do not provide advice ... we merely ensure your Personal Information is correct and that you wish to have a quality interaction with a Financial Adviser:

Captcha Image

Data Protected by 256 TSL Bit Encryption.
Trusted Xperts Limited is registered as a Data Controller in accordance with the Data Protection Act 2018. Information on this form will only be used to resolve your query and not for marketing purposes.

To search for a selected Trusted Xperts Partner Financial Adviser, Accountant or Law Firm in your area, simply visit the Trusted Xperts UK Map page and zoom in to your area and click the pin of interest, or select the Partner Type in the drop down menu options below. Increase accuracy by selecting your County or use your postcode.

Alternatively, if you prefer to speak with us in complete confidence, please Contact us using our secure enquiry form below, and Trusted Xperts Limited will get back in touch.

Please note - Trusted Xperts are not authorised to give advice. We will only confirm your details and purpose and with your consent, pass your Personal Information over to a selected Trusted Xperts Partner. Telephone calls may be recorded.

View Services ...

why choose Trusted Xperts?

Through one powerful and secure web portal, Trusted Xperts makes it easy for you to connect with selected Trusted Xperts Partner Financial Advisers, Accountants and Law Firms in your local area.

Trusted Xperts Partners across the UK meet our high standards and have passed our diligence checks, and in our professional opinion, represent some of the very best British firms, that can offer you high levels of customer service excellence and professional advice, matched by great products and services, at prices that are fair and transparent. That's our promise.

contact us

Please complete the secure general enquiry form below to get in touch. If you prefer please use our SECURE Contact page where you can opt in to our marketing newsletter. The internet is not a secure medium and the privacy of your data cannot be guaranteed. We do however take every care to ensure your data is protected by 256 bit TSL encryption. Our website and platform are GDPR compliant. Please view our Privacy Policy to learn how we handle your Personal Data.

If your enquiry is a general enquiry - you will be contacted by a member of the Trusted Xperts team. If you submit a Trusted Xperts Partner profile contact form - you will be contacted by them.


  Call Us Now

0333 444 5 800

 Address Location

4 Factory Road, Newport, NP20 5FA, Wales.
View Map

Connect with us