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
Man holding avocado halves up to his eyes

Smart Health

From on-demand consultations with UK based GPs, to Best Doctors - the expert case management service with the world’s top medical specialists, our Smart Health service is a convenient way to connect your customers to tools that help them to manage their health and wellbeing from anywhere in the world, 24/7.

Smart Health is a non-contractual benefit that could be changed or withdrawn in the future.


Literature and support materials

Business Protection Adviser Guide

This Business Protection guide helps to support and streamline your advice process.

Download Updated 09 Dec 21
Reasons why - Business Protection

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

Download Updated 16 Nov 23
Term Assurance for Business - Key Facts

Get into the detail on AIG’s Business Protection with Term assurance cover with our Key Facts document.

Download Updated 13 Dec 20
Term Assurance - Cover Details

Read our Cover Details for an explanation of how AIG’s YourLife PlanTerm Assurance works.

Download Updated 26 Feb 24
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 19 May 24
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 19 May 24
Business Protection - Quick reference guide

This document is a snapshot of our Business Protection offering. Get an overview of the types of cover on offer, how to determine a cover amount, features and benefits and those all-important tax considerations.

DOWNLOAD Updated 01 Mar 24