Key Person - Revenue Insurance

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What is a Key Person?

A key person is an individual whose continued association with a business provides that business with a significant and direct economic gain. This may be the CEO, Founding Director, Director or similar senior position. Economic gain means more than just profits. It can also include capital injections, cost efficiency, goodwill, access to credit and contacts with suppliers and customers. Business owners will also usually be key people.

What is Key Person Revenue Insurance?

Key person insurance can compensate the business for the loss of a key person in two different ways: business profitability (revenue purpose) and the capital value of the business (capital purpose). If the business is highly reliant on a key person for generating income, then insurance for revenue purposes may be appropriate. This can be used to protect the business against any loss in revenue or increased costs that crop up as a result of losing the key person, such as the costs of recruiting and training a replacement for your key person.




For comprehensive cover details and for information on our insurance underwriter, please get in touch with our team.

Examples of Revenue Purposes

Costs to locate, recruit and train a full-time replacement.


Cost of a temporary replacement until a full-time replacement can be recruited, or temporary overtime costs.

Compensation for falls in revenue/sales/profit.

Compensation for bad debts resulting from the loss of a key person.

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