For business owners, having a key person insurance policy may be worthwhile in order to help cover outstanding loans or cover lost profits that might occur from the loss. A lender may require business owners to have a key person insurance policy in place as a guarantee that funds will be available to repay the loan. Sole proprietorships likely do not need to have key person insurance, but any business with multiple partners in which the loss of one person may result in significant changes in the business may want to consider having key person insurance.