Key Person Cover
The death or serious illness of a key director or employee can have far-reaching consequences for a business.
It could lead to:
- A loss of profits
- The recall of loans
- Reduced capacity
- Loss of key clients/contacts
- Reduced practical know-how
Who is a Key Person?
When attempting to determine if somebody is a Key Person within your business, it’s important to think about the following questions:
- How easily could the business replace their expertise/knowledge?
- Without them, would business plans, growth, profits or expansion be affected?
- Would the business potentially lose customer confidence or credibility in their absence?
- Are there any financial arrangements dependent on the key person?