What should I check if the business depends on one person's work?

The short answer

 

Start by naming the work that would need a backup: customer relationships, day-to-day decisions, specialist work, or bringing in revenue. Then separate a temporary absence from that person's death. They are different situations, and one policy should not be assumed to address both.

 

Key-person life insurance can pay the business when an insured key person dies under the policy's terms. Disability-related business coverage is a separate question. Check who owns a proposed policy, who receives payment, what triggers a claim, and which expenses it is intended to address.

 

What you can check privately

 

Before choosing coverage, note what is already arranged: backup responsibilities, available cash, and any ownership or succession agreement. Discuss unresolved insurance questions with an appropriately licensed professional; have legal and tax questions reviewed by the relevant advisers. This is a starting check, not a business valuation, buy-sell agreement, or claim that a service is available here.