The 2026 Guide to Key Person Insurance in Ireland

As a business owner in Dublin, you likely have insurance for your office, your fleet, and your equipment, but what happens if you lose your most valuable asset - the person whose skills, contacts, or vision drive your revenue?

In 2026, the Irish business landscape is more competitive than ever. Whether you lead a growing SME in Santry or a tech firm in the Silicon Docks, Key Person Insurance (often called Keyman Insurance or Business Protection) is no longer just a "nice to have" - it’s a critical pillar of risk management.

What Exactly is Key Person Insurance?

Key Person Insurance is a life assurance or specified illness policy taken out by a business on its most vital employees or directors. The company pays the premiums, owns the policy, and receives the lump-sum payout if that individual passes away or suffers a serious illness.

Why Do Irish Businesses Need Business Protection in 2026

Revenue Stability -  Replacing a top-tier manager or lead developer isn't just about a new salary; it’s about the lost profits during the transition.

Loan Security - Many business loans in Ireland are personally guaranteed by directors. A payout can clear these debts immediately, protecting the business from being called in by the bank.

Recruitment Costs -  Specialised talent is expensive. A policy provides the "war chest" needed to headhunt a world-class successor.

Key Questions & Answers for Business Owners

Q: Is Keyman Insurance tax-deductible in Ireland?

A: It depends on the purpose of the cover. Generally, if the policy is intended to protect loss of profits, the premiums may be tax-deductible as a business expense, but the eventual payout may be subject to Corporation Tax. If the cover is for capital protection (like a business loan), premiums are typically not deductible, but the payout is tax-free.

Q: Who counts as a "Key Person"?

A: Anyone whose absence would cause a direct financial hit to the company. This includes founders, technical experts with unique IP knowledge, or top sales directors with exclusive client relationships.

Q: How much cover should we take out?

A: A common "rule of thumb" in 2026 is 5 to 10 times the person's annual salary, or a multiple of the profit they generate. At Citywide Financial, we help you calculate a precise figure based on your specific recruitment costs and profit risks.

Q: What's the difference between this and Income Protection?

A: Key Person Insurance protects the business from the loss of an employee. Income Protection protects the individual by replacing their personal salary if they cannot work due to illness or injury.

The Bottom Line

Don't leave your company's future to chance. In a volatile market, having a "financial shock absorber" ensures your business remains strong even when the unthinkable happens.

Ready to safeguard your business?

At Citywide Financial, we provide a free consultation with one of our protection experts to help you find the right cover at the best market price. We can run a comparative quote across Ireland's leading insurers to see how much Key Person Cover would cost for your team?

Contact our Santry office today:

Phone: 01 513 8710

Email: info@citywidefinancial.ie

Visit Us: 238 Swords Road, Santry, Dublin 9