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BETA — Comparison Site, Not an Insurer: This website is currently in beta, launching fully in Q2 2026. We are an information and comparison resource only — we are not an insurance provider, broker, or regulated financial adviser. We have no partnerships with insurers and hold no FCA authorisation. All coverage details, pricing, and terms should be verified directly with insurance providers before purchasing. For regulated advice, consult a qualified insurance professional or visit MoneyHelper or the FCA.
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Not sure if your business needs key person insurance? This guide helps you decide based on your business structure, team, and financial situation.
Our full comparison service launches Q2 2026
Pre-Register for LaunchYou likely need key person insurance if any of these apply to your business:
You may not need key person insurance if:
Even in these cases, it may still be worth considering. The cost of key person insurance is typically modest relative to the potential financial impact.
When deciding who needs key person insurance, consider these roles:
You do not need to insure everyone. Focus on those whose loss would have the greatest measurable financial impact on the business.
Ask yourself these questions to determine if you need key person insurance:
If you answered "yes" to two or more of these for any individual, key person insurance is worth serious consideration for your business.
If you have determined that your business needs key person insurance:
No, key person insurance is not legally required for any UK business. However, it may be required by investors, lenders, or business contracts. Many business loans and investment agreements include key person insurance as a condition.
A person is a "key person" if their absence would have a significant measurable financial impact on the business. This could be through lost revenue, client relationships, specialist knowledge, or personal guarantees on business debts. If losing them for 12 months would seriously harm the business, they are a key person.
Key person insurance is typically affordable relative to the risk it covers. For example, £500,000 of life cover for a healthy 35-year-old might cost £15-25/month. Compare this to the potential loss of revenue, recruitment costs, and debt obligations if that person could no longer work. For most businesses with genuine key people, the cost-benefit ratio is strongly in favour of having cover.
Compare key person insurance information and find the right type of cover for your business.
We are a comparison and information resource, not an insurer or broker. For regulated advice, consult a qualified professional.
Yes, you can take out key person insurance on any employee, director, or partner who is critical to the business. There is no restriction on who can be insured, though the cover amount should reflect the genuine financial impact of losing that person. The insured person must consent to the policy and complete a health declaration.