Key Person Insurance
Key person insurance for the people the business cannot afford to lose.
Some business risks do not come from property damage, vehicles, or lawsuits. They come from the loss of an owner, partner, executive, producer, licensed operator, or employee whose absence could threaten revenue and continuity.
Coverage overview
Start with the risk, then review the coverage path.
Key person insurance is commonly used by businesses that depend heavily on specific people. If that person dies or becomes unavailable depending on the policy and structure, the business may need capital for lost revenue, hiring, debt obligations, transition costs, or continuity planning.
Invicta Capital Group works with business owners reviewing key person exposure, business debt, partner risk, buy-sell planning, executive protection, and the financial impact of losing a critical person.
This is where Invicta separates from ordinary product-first insurance conversations. The issue is not simply life insurance. The issue is whether the business has enough capital and planning in place if the person who drives the company is no longer there.
Who this is for
Businesses that should review this conversation.
- Businesses dependent on one owner, founder, or top producer
- Companies with partners or ownership agreements
- Businesses with personally guaranteed debt
- Companies with a licensed operator, rainmaker, executive, or technical expert
- Owners reviewing succession, buy-sell funding, or continuity concerns
Coverage discussion
What may be reviewed.
- Business-owned life insurance for key person exposure where appropriate
- Capital for transition, hiring, replacement, and revenue disruption
- Business debt protection conversations
- Partner and ownership risk planning
- Buy-sell funding coordination where applicable
Common mistakes
What business owners often miss.
Assuming commercial P&C protects against the loss of a key person
Waiting until a lender, investor, or partner raises the issue
Using a personal coverage number instead of a business continuity number
Ignoring personally guaranteed business debt
Failing to coordinate the policy owner, beneficiary, and business purpose
FAQ
Questions business owners ask about key person insurance.
What is key person insurance?
Key person insurance is typically business-owned coverage designed around the financial impact of losing a person the business depends on, subject to product type and underwriting.
Who should be considered a key person?
Owners, partners, executives, top salespeople, licensed operators, technical specialists, or anyone whose loss could materially hurt the business may be considered.
Is key person insurance the same as buy-sell insurance?
No. Key person coverage protects the business from the financial impact of losing a critical person. Buy-sell funding is usually designed around ownership transfer obligations.
How much key person coverage does a business need?
The amount depends on revenue impact, debt, replacement cost, transition time, ownership structure, and continuity needs.
Coverage review
Ready to review this risk for your business?
Invicta Capital Group provides a clear starting point for business owners reviewing commercial insurance, key people, contracts, and operational risk.
Contacting us through this website does not bind, modify, or cancel insurance coverage.