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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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A guide to key person insurance for small businesses. SMEs face the greatest risk from losing key people - find out how to protect your business.
Our full comparison service launches Q2 2026
Pre-Register for LaunchKey person insurance for small businesses is arguably more important than for larger companies. Here's why:
Key person insurance is often more affordable than small business owners expect:
These are illustrative figures only - actual premiums depend on individual circumstances. The key point is that for most small businesses, key person insurance costs less per month than many routine business expenses (software subscriptions, for example) while protecting against a potentially business-ending event.
Use our calculator to estimate your specific costs, or see our cost guide for more detail.
For most small businesses, the key people to cover with key person insurance include:
You do not need to insure every employee. Focus on those whose absence would have the most measurable financial impact. In many small businesses, this is just 1-3 people.
How to calculate the right cover amount for your small business key person insurance:
For most UK SMEs, cover amounts typically fall between £100,000 and £1 million. Use our calculator for a personalised estimate.
Steps to arrange key person insurance for your small business:
The process is straightforward and can usually be completed within 2-4 weeks from first enquiry to policy in force.
This key person insurance for small business guide references:
Small businesses are often MORE vulnerable to key person loss than larger companies because they have less depth of talent, fewer cash reserves, and more concentrated client relationships. If losing any one person would significantly impact your revenue or operations, key person insurance is strongly recommended.
Key person insurance for small businesses can start from as little as £10-20 per month for basic life cover on a healthy, non-smoking 30-40 year old. The exact cost depends on age, health, cover amount, and type of cover chosen. For most SMEs, it costs less than many routine business subscriptions.
Sole traders cannot take out key person insurance on themselves (as there is no separate business entity to be the policyholder). However, sole traders with employees can insure those employees as key people. Sole traders wanting personal protection should consider personal life insurance or relevant life policies.
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.
It depends on the purpose of the policy. If the sole purpose is to protect against loss of profits, premiums may be deductible as a business expense. If protecting loan repayment, premiums are typically not deductible. See our tax guide for full details. We recommend consulting an accountant for your specific situation.