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Definition
Key person insurance (key man insurance) pays a benefit to the company if a person essential to its success — a founder, lead salesperson or technical expert — dies or becomes critically ill.
In plain terms
Some businesses depend heavily on one or two people. This cover gives the company cash to survive the disruption, replace them and keep meeting commitments.
Why it matters for your company
Lenders sometimes require key person cover on owner-dependent businesses so a loan can still be serviced. It is prudent risk management for any concentrated team. See creditworthiness.
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Credit insurance
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.