Services — Business Protection
Protect the people your business depends on
A business can depend heavily on one or two key individuals — a founder, a technical lead, a top salesperson. Business protection, including Keyman Insurance, helps cushion the financial impact if something happens to someone critical to the business.
What is Keyman Insurance?
Keyman Insurance is life (and sometimes critical illness or disability) cover taken out by a business on a key employee, owner or director. If that person dies, or is disabled or critically ill during the policy term depending on the cover chosen, the payout goes to the business rather than the individual's family — to help offset lost revenue, cover loan obligations, or fund the cost and disruption of finding a replacement.
When this typically matters
A co-founder or partner
If a founder or partner who drives revenue, holds key relationships or guarantees a loan is suddenly no longer there, the business can face a real financial gap on top of the personal loss.
A specialist whose knowledge can't be replaced quickly
Some roles carry knowledge or client relationships that took years to build. Losing that person unexpectedly can disrupt operations while a replacement is found and trained.
Someone a loan or guarantee depends on
Business loans are sometimes personally guaranteed by an owner or director. Keyman cover can help the business meet those obligations if that person is no longer able to.
How it typically works
- 1
The business identifies the key person or people it depends on most.
- 2
A sum assured is worked out based on that person's economic value to the business — their contribution, any loan guarantees, and replacement cost.
- 3
The business takes out and pays for the policy, and is the beneficiary if a claim arises during the term.
- 4
Cover is reviewed periodically as the business, its key people, and their value to it change over time.
Who typically needs this
- Small and growing businesses that rely heavily on one or two individuals
- Partnerships wanting to protect against the loss of a partner
- Businesses with loans or credit lines personally guaranteed by an owner or director
- Businesses where one person holds most of the client relationships or specialist knowledge
Common questions
Business protection needs, sum assured and tax treatment vary significantly by business structure, size and the role of the individual involved. This page is general guidance, not tax or legal advice — an advisor will discuss what's genuinely relevant to your business, alongside your chartered accountant where tax treatment is involved.