In every successful business there will be key players who are the driving force to that business. In the event of the unforseen happening to the key person a business can also be financially affected, for example the business profitability can be adversely affected, the company may be forced into great expense to find and train a competent successor to replace the key person/s.
Key person is taken out just like Risk insurance for example the cover can be life insurance, Total and permanent Disablement and Trauma/Critical illness cover – however key person cover is taken out by the business in an amount sufficient to offset the estimate cost a loss (death, disablement or critical illness) would cost the company.
Don’t take the risk and leave yourself and your business open to financial risk. For more information on covering your business please go to business succession.