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Key Person Insurance

Every business needs to protect its assets, and your directors or partners and employees are often the most valuable assets your business has.

Many companies spend large amounts of money insuring their plant, stock and machinery, but often overlook their greatest asset – their most valuable employees who are key people in their business. 

A key person is any person in your business whose sudden loss would have an impact on your company’s wellbeing. Without this person, your business could suffer significant disruption.

The loss of a key person through death or disablement can have a significant impact on your business, resulting in significant damage to your bottom line, operations and reputation. In a recent Mercer Marsh Benefits Five Pillars of People Risk Report,  67% of respondents deemed it likely that a key person risk would affect their business within the next 3 years, and 55% stated that the loss of a key person would have a high impact on their business. Our team of Personal Risk advisers can partner with you to find the right solutions to protect your business. We can help you:

  • Assess the key person and human capital risks for your business, providing insights and recommendations
  • Determine the best insurance solutions and negotiate competitive rates
  • Work with you to navigate the unexpected so you can focus on growing your business.


  • A Finance Director
  • A Principal/Owner/Director
  • A Managing Director/President/
  • Strategic Marketing/Sales People
  • Industry specialist with a unique skill to your company (eg scientist/designer key to product design)

  • Major financial loss
  • Inability to replace the specialised expertise lost
  • Loss of training, company culture or ‘know how’
  • Unfinished business, research or contracts with delays in delivery and loss of profit as a result
  • Loss of credit approval
  • Competitors taking advantage of the issues being experienced to snatch market share
  • Loss of confidence of other employees in the management/team
  • Increased costs to attract a suitably qualified replacement

Consider what would happen to your business if one of your key employees were to pass away, or become permanently injured or disabled. Who would replace them? Would your revenue or operations be jeopardised? If the answer could be yes, then you should consider putting a plan in place to manage this.

  1. The company/enterprise proposes an insurance policy upon the key person’s life.
  2. The key person retains no beneficial interest in the policy.
  3. In the event of a claim, proceeds are payable to the business/enterprise – providing cash precisely when it is needed.

Why Marsh

The impact of ill health or death of a Key Person on business can be significant. Mercer Marsh Benefits can help to protect what is often the most valuable asset and biggest risk of a business - people. 

Our people

Jody Alder

Jody Alder

Private Health and Benefits Leader, MMB

  • New Zealand

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