Employee Benefits

Key Person Insurance

Key Person Insurance

Insuring the people that make a business succeed.

Legally a business will need to hold a wide variety of insurances, however, none of them will provide cover if a key employee is unable to continue their function.

This is where Key Person Life insurance (also known as key man insurance and key person protection) steps in.

Key Person insurance is needed when a business acknowledges that the success or failure of their company depends upon a few key, income generating, individuals.

The specialised knowledge, skill set or contacts are usually vital to the profitability of the business. Our experience tells us that businesses spend money and time insuring the building, the contents, the cars, and even mobile phones.

However, the major asset that remains unprotected will be the key drivers or owners of the businesses. 

The sudden loss of a key figure can prove devastating to a business and can cause long-term irreparable damage.

Our Key Person Insurance policy is designed to pay out a cash sum if the person insured:

  • Dies

  • Meets insurer’s terminal illness criteria

  • Becomes permanently totally disabled – if you’ve chosen additional critical illness cover


Key Person cover involves a company taking out a policy on the life of each Key Person. The business owns the contract and pays all the premiums, and all benefits arising from a claim are paid to the business. 

For example, a simple 5x multiple of salary can be used to assess the amounts covered, or a business loan or credit line may be the preferred route to deciding on the sum assured. 

This is where Lark can assist in guiding you through the process of deciding on the appropriate amount and length of the cover. As a whole of market broker, we can source on premium and cover to get your key people covered, and your business protected.
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