You'll find that the success of almost all small and medium-sized businesses is dependent on a few people who make a significant contribution.

These key people can include the owners, senior directors, sales people, production managers, research and development staff or other people with specialist skills or knowledge.

Whatever the key person does, their loss could have disastrous consequences for the business. Some of the problems the business may face are:

• loss of profits
• the need to recruit or train a replacement
• loss of important personal or business contacts
• difficulties in meeting existing loan repayments

There are no hard and fast rules when assessing the financial value of a key person. Each key person must be dealt with on their own merits.

There are several options available to guide you in assessing a reasonable amount of cover, and these are outlined in the pdf below.

Download the 'Key Person and Loan protection' section of our guide to business protection.

Size: A4 - 6 pages - 108kb

Online publication date: Jul 09