Your people are your most valuable asset. Protect the skills that drive your success.
Financial continuity to help you recruit, replace, and rebuild if you lose a critical team member.
Identifying Your Critical Talent
Every business has them: the individuals who are absolutely fundamental to its success. It might be the top salesperson who brings in 40% of the revenue, the lead software developer who built your proprietary platform, or the managing director whose industry relationships keep the order book full.
Key Person Protection (formerly known as Keyman Insurance) is designed to insure the business against the financial shock of losing such an individual due to death, critical illness, or disability. It isn’t a benefit for the employee; it is a lifeline for the company, paying out a cash lump sum directly to the business to mitigate the loss of their specific skills and influence.
Covering Costs and Preserving Confidence
The impact of losing a key person is often two-fold: an immediate drop in profits and a sharp rise in costs. The pay-out from a Key Person policy is designed to bridge this gap. It provides the funds needed to pay recruitment fees to find a specialist replacement, offer a competitive salary to headhunt top talent, or hire temporary contractors to keep projects moving in the interim.
Crucially, it also protects business confidence. If you rely on bank loans or investor backing, having this protection in place demonstrates responsible risk management, reassuring your creditors that the business remains viable even if a key figure is no longer there.
Valuing the Irreplaceable
One of the most common questions we get is, “How much should we insure them for?” Unlike a car or a building, you cannot simply look up the book value of a person. At Kingsbridge, we work with you to calculate a realistic “financial value” for your key staff.
This is usually based on a multiple of their salary (to cover recruitment and training time) or a calculation of their direct contribution to the company’s net profit. We help you structure the policy correctly—typically written on a “life of another” basis—ensuring that if the worst happens, the funds are released quickly giving you the breathing space you need to recover.
