Key person insurance.
Could your business absorb the loss of a founder, specialist or major revenue generator? Key person cover can help protect trading continuity following a qualifying death or critical illness.
Friendly advice, tailored to your circumstances. Product terms, underwriting and exclusions apply.
How does this cover work?
The company usually owns the policy and, following a valid insured event, receives the benefit. It may help with recruitment, replacing lost profits, repaying commitments or buying time to reorganise.
The right amount and type of cover depends on what you want to protect, your existing arrangements and your budget. An adviser can explain which features matter and what a policy may not cover.
Things worth checking
- Identify who genuinely creates material financial risk, then estimate the likely disruption and amount of cover required.
- Decide whether death cover, critical illness cover or both suit the risk and review the policy ownership.
- Premium deductibility and taxation of proceeds vary by purpose and structure. HMRC conditions matter; confirm with professional tax advice.
Frequently asked questions.
Who receives the payout?
Where the policy is set up for the business, the business normally receives a valid claim payment, subject to the contract.
Are premiums automatically a business expense for tax?
No. HMRC applies specific conditions, including the trading purpose and type of policy. An accountant should confirm the position for the arrangement.
Not sure what to choose?
We can talk through your priorities, existing cover and available options, with no pressure to take out a policy.
Talk to a protection adviser ↗No policy provides cover for every eventuality. The insurer's terms, conditions and exclusions determine the benefits payable.
Related protection options.
Business protection insurance
Protecting a business isn't only about buildings or equipment. A business can also depend on the people who generate income, manage clients and make decisions.
Explore coverRelevant life insurance
Company-funded life insurance can be a way for a business to provide an individual death-in-service benefit to an eligible employee or director, without a full group scheme.
Explore coverEmployee benefit protection
Group protection benefits can help employers offer meaningful support to their teams, from death-in-service cover to income protection and healthcare.
Explore coverFurther information: HMRC: key person insurance premium rules ↗ This is general guidance, not a personal recommendation or tax advice.