A key person is crucial to the business’s day-to-day running and whose absence would cause serious problems.
In most small businesses, the key person is the owner, but it could also be anyone whose skills, knowledge, and experience affect revenue.
The important thing is to consider whether the business could continue if that person died or became seriously ill and how much it would cost to replace them.
Examples of a key person include:
• Business owner
• Managing director
• Operations manager
• IT manager
• Sales managers and leading salespeople
• Employees with specialist skills or knowledge