Business Owner Resources
Key Person Risk Checklist
Key person risk is the gap between what a business depends on and what it has documented or protected. This checklist helps identify where those dependencies sit.
Review each item and note what still needs attention. Printing this page creates a working copy.
Revenue dependencies
- Identify which individuals are responsible for the largest client or customer relationships.
- Note whether those relationships are documented in the business's records or held personally.
- Ask what revenue would be affected if that person were unavailable for six months.
Operational knowledge
- List processes, systems, or credentials understood by only one or two people.
- Note which responsibilities have written procedures and which do not.
- Identify whether cross-training exists for critical roles.
Management and ownership
- Confirm who holds signing authority and how it would be exercised if they were unavailable.
- Note whether a designated successor exists for each leadership role.
Financial obligations
- Review business loans, leases, or credit agreements that depend on a specific individual.
- Note any personal guarantees and what they would mean for the business or family.
Replacement costs
- Estimate the recruiting, training, and lost-productivity cost of replacing a critical person.
- Consider the time required to bring a replacement to full effectiveness.
Contingency planning
- Describe the business's plan if a key person died or became disabled unexpectedly.
- Confirm whether any coverage exists today, and how it is owned and designated.
Content is provided for general educational and informational purposes only and is not individualized insurance, investment, legal, or tax advice. Insurance availability, eligibility, benefits, and costs depend on applicable policy terms, underwriting, and other factors. Consult qualified legal, tax, and financial professionals regarding your specific circumstances.