It helps a business manage the financial disruption if an essential employee or owner dies, falls ill or can’t work. Losing a key person can affect revenue, client relationships, lending arrangements and day-to-day operations. The benefit can support cash flow, keep the business steady through the transition, and help cover the cost of recruiting, training or restructuring while it adjusts.
What business risks does key person insurance help address?
Reviewed by Garrett Agencies Ltd., October 2026. How we write
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More about key person insurance
Protects the business if it loses someone whose skills, contacts or sales it depends on.
More questions about key person insurance
- Who qualifies as a “key person” in a business for key person insurance?
- How long does key person life insurance provide coverage?
- How long does key person disability insurance provide coverage?
- How is “total disability” defined in key person disability insurance?
- How does key person disability insurance work?
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