Key Person Insurance

Key person insurance protects businesses against the loss of profits if an employee becomes terminally or critically ill, or dies. The money can be used to find a replacement. Key person insurance can help keep the business trading.

How key person insurance works

A claim can be made if a key person dies, or is diagnosed with a terminal or critical illness. The payout can be used to help the business while recruiting for a replacement or undergoing reorganisation.

Why it's needed

Businesses need to be insured, but covering for the risk of losing a key employee is not a legal requirement. Because of this, it’s easy for businesses to overlook this protection. But this could be a mistake.

The loss of a key person can impact the business in a number of ways, including:

  • Customers losing confidence in the business
  • Banks calling in loans
  • Suppliers asking for payment up front

Many businesses consider their staff their most valuable asset - and if your client feels this way about their workforce too, key person protection could be the cover they’re looking for.

Key persons in a business

A key person can be any individual who significantly contributes to a business’s financial success due to their:

  • Skills
  • Knowledge
  • Experience
  • Leadership

Key people can be found at any level or department of a business, but can include:

  • Owners
  • Managing directors
  • Sales managers
  • Research and development staff
  • Creative specialists
  • Technical experts
  • Sole traders
Two doctors walking up stairs

Best Doctors®

We give the person insured access to Best Doctors for invaluable second medical opinions. Their knowledge helps the individual and their immediate family get the right diagnosis, treatment and care.

Best Doctors is a non-contractual benefit which can be withdrawn at any time without notice.

Literature and support materials

Business Protection Guide

This Business Protection help to support and streamline the advice process.

Download Updated 01 Nov 16
Reasons why - Business Protection

A guide to provide an example of what a ‘reasons why’ letter could contain.

Download Updated 30 Jun 18
Term Assurance for Business - Key Facts

For more information on AIG's Business Protection with Term Assurance cover, visit our Key Facts.

Download Updated 30 Sep 18
Term Assurance - Cover Details

Read our Cover Details for an explanation of how AIG's Term Assurance works.

Download Updated 31 Aug 18
Critical Illness for Business - Key Facts

For more information on AIG's Business Protection - Critical Illness with Term Assurance cover, visit our Key Facts.

Download Updated 30 Sep 18
Critical Illness for Business - Cover Details

Read our Cover Details for an explanation of how AIG's Business Protection - Critical Illness with Term Assurance product works.

Download Updated 30 Sep 18