Case Study: Jane
Background
Jane co-founded a boutique travel company with a long-time friend and business partner. They specialised in bespoke adventure holidays and built a loyal customer base. Early in the business, Jane’s partner suggested they take out Key Person Cover — a policy designed to protect the business if one of them became seriously ill or died.
They discussed it but never followed through. At the time, it didn’t feel like a priority.
The Diagnosis
When the first COVID-19 lockdown hit, all trips were cancelled or postponed, and the business was already under pressure. Not long after, Jane’s partner was diagnosed with a critical illness and could no longer work. The business struggled without her, and Jane was left trying to keep everything going alone.
Eventually, her partner left the company to start a new business, leaving behind outstanding debts that Jane is still paying off today.
The Outcome
Without Key Person Cover in place, there was no financial cushion to help with the disruption. The company nearly collapsed, and Jane had to use personal savings to stay afloat. A lump sum payout could have helped cover debts, issue customer refunds, and allow her business partner to step back with dignity and financial support.
“We thought we had time — but everything changed so fast. That one policy could have changed everything.”
Summary
Type of Protection missing:
Reasons cover would have helped:
- Providing a lump sum upon diagnosis of a critical illness of a business partner which would have helped the business stay afloat
Potential payment:
- A lump sum to the business
Benefits (if cover had been in place):
- Business debts cleared
- Jane’s savings protected
- Financial support for the business