Man in yellow hard hat checking equipment

Key person protection

Protect your business’ most important asset: your key people

As a business owner, you’ve probably arranged insurance to protect your buildings, equipment and other assets – but it’s important you don’t forget to protect your most important asset: your key people.

Although every staff member in your business is important, there may be a key person that is critical to your trading operations. How would your business cope if a key person was unable to work due to illness or injury, major trauma, permanent disablement or death?

Key person protection can provide a monthly payment to help reduce the impact on your business if a key person is unable to work due to illness or injury. You also have the option to take out Trauma, Life or Disability insurance which can provide a lump sum payment to the business upon major trauma, death or permanent disablement of the key person.

This might suit you if…

  • you’re a business owner or partner who is critical to trading operations
  • you have a specialist, such as a designer, whose skills and knowledge are vital to business success
  • you have a top sales person who builds and manages key relationships and business contacts; and they are integral to the survival and growth of your business.

Here’s what you get:

  • A monthly payment up to an agreed amount (maximum $10,000) if you choose to take out key person protection cover and that key person is unable to work due to illness or injury.
  • A lump sum payment at an agreed amount if you choose to insure your key person with Trauma, Life or Disability cover.
  • Peace of mind that you are getting financial assistance to help your business through a difficult time.

Talk to your Adviser
or call us on

0800 267 263

Monday to Friday
8:00am - 5:00pm

Get a tailored business insurance quote

Find an Adviser

How much your key person protection costs depends on a number of factors, including the insured person’s:

  • age
  • gender
  • smoking status
  • occupation
  • health and family medical history
  • level of cover. 

To get a quote, speak to an adviser who can take your specific objectives, financial situation and needs into consideration.

Grassy slope leading to black sand beach with driftwood

Who is a key person?

A key person in your business provides the ideas, drive, initiative and particular skills that generate essential revenue and profit. They could be:

  • The founder and/or owner who provides direction, momentum and builds your business’ reputation.
  • A specialist, such as a designer, whose skills and knowledge are vital to business success.
  • A top performing sales person who builds key relationships and business contacts.

When your business loses a key staff member due to illness or injury, major trauma, permanent disablement or death it can have an impact on three main areas:

  1. Revenue: a direct impact on sales or an indirect impact caused by the loss of someone who drives strategic direction, major growth initiatives or manages another vital area or process within your business.
  2. Expenses: you may have additional costs associated with replacing a key staff member, like recruitment, training or employing temporary staff.
  3. Relationships and contracts: you may experience loss of key clients or suppliers if your key staff member manages these relationships. Or you may experience contractual penalties or lose future contracts.

In the same way every business is different, so are the financial impacts on businesses. The range of impacts include:

  • Minimal impact that you can self-manage by drawing on reserves or ongoing revenue.
  • Medium impact that requires additional funds to enable your business to continue trading and remain profitable.
  • Significant impact that leads to major cash flow requirements to help with required structural changes or a wind-up of your business.

The loss of a key person (due to illness or injury, major trauma, permanent disablement or death) can impact your business revenue, expenses and relationships. This could ultimately impact the value of your business.

Key person protection can help protect the value of your business by providing critical cash flow to help you:

Keep your business doors open

It can help offset the impact on sales by supplementing lost revenue through a monthly benefit while a key person is unable to work due to illness or injury. A lump sum payment through Trauma, Life or Disability insurance can provide cover for events that are not included in key person protection.

Fund your ongoing business expenses

The monthly benefit can be used for any business purpose to keep things running smoothly. This could be meeting ongoing expenses or covering the cost of finding replacement staff.

Plan ahead for the future

Careful planning can help you ensure that you can manage the loss of a key person and minimise the resulting financial impact. Being prepared can help you to protect the value of the business that you have worked hard to build.


Get started
Apply for key person protection

If you want to safeguard your business with key person protection, it’s good to talk to an Adviser. They can talk you through the different options and help you decide which suits you and your business best.

Find an Adviser
Large rock by grass on beach

Understand how business protection works

We offer business protection options for businesses

Find out more

How to make a business protection claim

Maintain business as usual if the unexpected happens

Find out how
Round green plant leaves catching sun

Important information

Show more

This information provides a general summary of the key features of the products described and is subject to change without notice. Terms, conditions, criteria, definitions and exclusions apply as set out in the relevant policy document and schedule. In addition, waiting periods, qualifying periods, no claims periods, and/or survival periods may apply. Full details are set out in the policy document and schedule, which is available on request. Applications for cover are subject to approval by AMP Life Underwriting. 

The content on this website is for information only. The information is of a general nature and does not constitute financial advice or other professional advice. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. While care has been taken to supply information on this website that is accurate, no entity or person gives any warranty of reliability or accuracy, or accepts any responsibility arising in any way including from any error or omission.

A disclosure statement is available from your Adviser, on request and free of charge.