15th January 2016

Four steps to identifying your key person

Tagged: Key Person Insurance

How would your business cope if one of its owners or key people died or suffered a critical illness? Follow these steps to identify who they might be.


Step 1

Who is responsible for the four key business functions?

  • Leadership
  • Production of service or goods
  • Financial control
  • Sales and marketing


Step 2

Are they a key person within the business functions?

A key person could be one or a number of people, such as:

  • Chairman
  • CEO
  • Managing Director
  • Marketing Manager
  • IT Specialist
  • Sales Director


Step 3

Identify the financial consequences.

Could their death or inability to work lead to a financial consequence for the company:

  • Lower profits whilst the business adjusts
  • An interruption to the day-to-day running of the business
  • Loss of clients from failed contracts
  • The need to recruit a replacement
  • Your clients or suppliers losing some confidence in your business
  • The inability to raise capital or attract new investment.


Step 4

What next?

Once you have identified your key person(s) then it’s time to talk to a financial expert, as in many cases your business needs will be unique and there isn’t always a set formula for understanding the cover required.