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Key person insurance protects small to medium businesses against the significant impact of losing a key person through death, illness or total disablement.
Defining who is a key person depends on the structure of the business and level of reliance on people within it. Key people could include employees, owners, managers and in some cases even suppliers.
Key person insurance can protect the business:
- Reductions in revenue and profits if contracts or work in hand are disrupted;
- Outgoings and expenses;
- Goodwill;
- Liquidity;
- Ability to repay debts.
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