Key Person
Small to medium-sized enterprises rely heavily on a key individual without whom the business would struggle to function. A key person is someone whose skills, knowledge, experience, or leadership are vital to the success and stability of the business. This may include founders or key executives.
If a key person were to experience an illness or injury that prevented them from working, the business could face significant challenges or even collapse. This introduces an unacceptable level of risk, especially for the stakeholders who depend on the business’s success.
To mitigate this risk, you can acquire key person insurance.