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A Key Person is someone who provides economic advantage to a business. This could be through their skills and knowledge, image or appeal to customers, access to capital or credit or their ability to organize human resources efficiently and effectively. When looking at how to measure a key person’s loss to the company, you need to take the following factors into account:
With the loss of a key person other factors to consider are:
No strategy means - no choice; you can keep paying the key person if disabled, but for how long and what pressure does this put on the company?
The loss of a key person can put the company at risk that can expose creditors and shareholders, because each Director is accountable for sound governance, to safeguard the viability of the organisation.
Key Person Protection can be used as part of a unique risk protection plan for a business or a business owner looking at making their income secure if something thing should happen to them.
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