Protection for the people your business relies on most
Key person insurance helps protect your organization from the financial impact of losing a vital employee, owner or partner due to death, illness or injury.
Built to preserve stability
Supporting your organization when a key person is lost
When a key leader, revenue driver or business partner is suddenly unable to contribute, the impact can be felt across operations, revenue and long-term stability. Key person insurance can help provide the financial support your organization needs to manage disruption and continue moving forward.
How coverage can help
Key person insurance for business continuity
The right policy can help your organization manage financial uncertainty and maintain stability after the loss or extended absence of a critical contributor.
Coverage can provide funds if a critical employee becomes seriously ill or is unable to work, helping the business manage immediate financial pressure.
When connected to a business loan, key person insurance may help reassure lenders that the organization has a plan to manage an unexpected loss.
A policy can help fund a buy-sell agreement if a partner dies or becomes disabled, supporting an orderly ownership transition.
Coverage may also create a financial reserve that can support retirement planning, estate needs or broader continuity planning.
Types of key person insurance coverage
Key person insurance can form an important part of a broader business continuity and risk management strategy. Depending on your organization’s needs, coverage may help offset financial disruption, protect cash flow and reassure stakeholders after the loss or extended absence of a critical contributor.
Life insurance
Life insurance provides a lump-sum payment to the business if a key person dies, helping cover lost revenue, recruitment costs, operational expenses or other immediate financial needs.
Critical illness insurance
Critical illness insurance can provide a lump-sum payment to the organization if a key individual is diagnosed with a covered serious illness, helping manage the financial impact of their absence during treatment and recovery.
Disability insurance
Disability insurance can provide financial support if a key employee becomes disabled and is unable to perform their duties, helping the business cover replacement costs, operational changes or other expenses related to their absence.
Why work with Navacord
A knowledgeable partner for key person insurance
Navacord advisors help organizations assess key person risks, compare coverage options and build insurance solutions that align with business continuity needs.
Our advisors simplify complex coverage decisions by helping you understand how key person insurance can protect cash flow, operations and long-term stability.
As one of Canada’s largest independent brokerages, Navacord works with a wide range of insurance providers to help identify coverage that fits your organization’s needs.
If a claim occurs, our in-house claims team can help guide the process, communicate with insurers and advocate for an efficient resolution.
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FAQs about key person insurance
Key person insurance is purchased by a businesses on essential employees, owners or partners whose loss could create financial or operational disruption. If that individual dies, becomes seriously ill or is unable to work, the policy can help provide funds to manage the impact.
The benefit can be used to help protect cash flow, cover replacement or recruitment costs, maintain creditor confidence or support business continuity planning.
A business may consider key person insurance for individuals whose knowledge, relationships, leadership or revenue contribution would be difficult to replace quickly. This may include founders, executives, senior sales leaders, technical specialists or business partners.
Identifying key people often starts by assessing who is most critical to operations, client relationships, financing arrangements and long-term business value.
The right amount of coverage depends on the key person’s role, revenue impact, replacement costs, outstanding loans and the time it may take the organization to recover. An advisor can help assess these factors and recommend coverage that aligns with your business continuity goals.
Key person insurance solutions