The death or serious illness of a key director or employee can have far-reaching consequences for a business.

It could lead to:

• A loss of profits
• The recall of loans
• Reduced capacity
• Loss of key clients/contacts
• Reduced practical know-how

Who is a Key Person?

When attempting to determine if somebody is a Key Person within your business, it’s important to think about the following questions:

• How easily could the business replace their expertise/knowledge?
• Without them, would business plans, growth, profits or expansion be affected?
• Would the business potentially lose customer confidence or credibility in their absence?
• Are there any financial arrangements dependent on the key person?