Business ProtectionKey Person Protection
Some People Cannot Be Replaced in a Quarter.
Most closely held companies depend on a handful of individuals whose absence would be felt in revenue within weeks.
The problem
The Relationships Leave With the Person.
A key person is rarely just a role. They hold the client relationships, the technical knowledge, the lender's confidence, or the team's cohesion.
Losing them costs more than a salary line, and for longer.
Why it matters
Revenue Falls Before Costs Do.
When a central person is lost, clients get nervous, projects stall, and the search for a replacement takes months. Meanwhile payroll, rent, and loan payments continue exactly as before.
Lenders may also react. Some loan agreements reference key individuals directly, and a bank's confidence can change quickly when one of them is gone.
A stronger outcome
Time to Recover, Bought in Advance.
A stronger position is one where the business owns coverage on the people it genuinely depends on, so a loss produces a manageable gap rather than a crisis.
The money is not meant to replace the person. It buys the time and stability to recruit properly, reassure clients and lenders, and keep the business intact while it adjusts.
- Cash to steady operations while revenue recovers.
- Room to recruit deliberately rather than desperately.
- Reassurance for lenders and major clients.
- Coverage sized to the actual contribution, not a guess.
How we approach it
We Identify Who, Then Size the Exposure.
We start by naming the people the business could not easily replace, which is often not the same list as the org chart suggests. Then we look at what their absence would actually cost in revenue, recruitment, and disruption.
Ownership, beneficiary designation, and the tax treatment of premiums and proceeds are questions for your CPA. We structure the coverage to fit what they advise.
Not sure how this applies to you?Takes about two minutes. Independent comparison, then a clear recommendation.
Protect Your BusinessPotential solution categories
Ways to Cover the Exposure
Weighed against how central the person is and what a loss would cost.
- 01
Key person life insurance
The business owns coverage on a critical person and receives the benefit.
- 02
Key person disability
Planning for a long absence, which is more common than a death.
- 03
Executive retention
Benefit arrangements that make a key person more likely to stay.
- 04
Lender-required coverage
Coverage a bank requires as a condition of financing.
- 05
Succession overlap
Coordinating with who would step into the role.
- 06
Periodic re-sizing
Revisiting coverage as the business and the person's role grow.
Trade-offs worth understanding
What It Does Not Do.
Honest limits worth stating.
- Coverage buys time and stability; it does not replace the person's contribution.
- The insured must consent, and coverage is subject to underwriting.
- Tax treatment of premiums and proceeds depends on structure and notice requirements; confirm with your CPA.
- Coverage that fit a smaller company can fall behind as value and roles grow.
- Guarantees are backed by the claims-paying ability of the issuing carrier.
Products that may be used
How This Gets Solved.
Depending on the situation, strategies may involve one or more of these. Which one fits, if any, depends on your circumstances.
Start with the gap
Name the Exposure First
We will work out who the business genuinely depends on and what their absence would cost, before discussing any coverage.
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