Can my business insure multiple key people on one policy?

Yes, many Australian insurers allow businesses to cover multiple key persons either on a single policy or through multiple separate policies, providing flexibility in how coverage is structured. A single policy covering multiple key people can simplify administration, potentially reduce overall costs, and ensure consistent coverage terms across all insured individuals. However, each key person listed on the policy will typically have their own sum insured based on their individual value to the business, calculated using methods like multiples of their salary or their contribution to profits. The advantage of separate policies is greater flexibility - each key person can have customised coverage types, amounts, and purposes (revenue versus capital). This is particularly important when different key people serve different business functions or when tax treatment needs to differ. For example, you might need revenue-purpose insurance for your lead salesperson but capital-purpose insurance for a business partner whose shares would need to be bought out. When deciding between one policy or multiple policies, consider your administrative capability, the tax documentation requirements for revenue versus capital purposes, and whether each key person's coverage needs are similar or substantially different.