Most directors and contractors are meticulous about protecting their business. You insure your office. You protect your equipment. You may even have cyber cover in place.

But there’s a blind spot in many business plans.
👉 What happens if the person who drives the business, the director, founder, or specialist contractor, suddenly isn’t there?

It’s the scenario nobody plans for, yet it’s the one that can hit the hardest.

Why People Are Your Biggest Risk (and Asset)

Buildings and laptops are replaceable. Key people aren’t.

If a director, co-founder, or contractor with unique knowledge were to die unexpectedly or suffer a critical illness, the consequences could include:

• Cashflow disruption.
• Loss of key contracts or clients.
• Nervous investors and lenders.
• Unpaid salaries and stalled growth.

This is where key person cover comes in.

What Is Key Person Insurance?

Key person insurance (sometimes called key man insurance) provides a financial safety net if a crucial individual dies or suffers a serious illness. The policy pays a lump sum directly to the company, which can be used to:

• Cover lost revenue.
• Recruit and train a replacement.
• Reassure clients, banks, and investors.
• Stabilise the business at a time of crisis.

It doesn’t replace the individual, but it gives the company breathing space.

Stories From Directors Who Never Expected to Need It

One sales director told us:

“I never thought we needed key person cover. Then our FD was diagnosed with cancer and out for months. The payout kept us afloat when cashflow nearly ground to a halt.”

Another small business owner shared:

“We assumed our business interruption insurance covered people. It didn’t. When our sales & marketing director died suddenly, key person insurance gave us the funds to rebuild the team and reassure our biggest client.”

Why This Matters for Contractors and Directors

Whether you’re a limited company contractor or a director running a team, you may be the single point of failure. If you’re the rainmaker, the technical expert, or the person with the relationships, your absence could put everything at risk.

Key person cover isn’t about being pessimistic. It’s about being practical. It shows clients, staff, and investors that the business can withstand shocks.

The Takeaway

Most directors and contractors are brilliant at managing obvious risks. But the blind spot is people, and without a plan, losing a key individual can stop a business in its tracks.

Key person insurance closes that gap. It ensures that if the worst happens, your business can keep going, your staff are protected, and your future stays intact.

👉 Ready to explore how affordable key person cover could be for your company? Talk to us today and we’ll walk you through your options.

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