When does key person respond?

A founder, principal or lead engineer dies or is permanently disabled.

Which industries usually carry key person?

None of the twenty industry classes lists it as usual; it is bought for a specific exposure.

What does the register compute for a key person line?

The deductible retained per claim and, with a claims count, per year; the limit less the deductible the insurer carries; the premium as a share of the limit; and the three-year loss ratio where claims paid are given. Flags where the limit was never claimed against, the rate on line is far above the schedule median, or the retention sits below the claims frequency.

Every line of cover · People

Key person

A lump sum to the business on the death or total disability of a named person whose loss would cut revenue or trigger debt covenants.

On the schedule

Also called	key man
Family	People
Responds when	A founder, principal or lead engineer dies or is permanently disabled.

Which industries carry it

Usually held by	none of the twenty classes as a usual line; bought for a specific exposure
Often needed, often lacking	Professional services, Software and SaaS, Financial services, Media and marketing

Standards this line engages

5 clauses

Clause text quoted from a human-verified compliance corpus under licence. Clauses marked for APRA-regulated buyers or US insurance licensees appear on a register only for those buyers.

ISO 31000 6.5.2 Selection of risk treatment options

Guidance: choosing treatment options balances the benefits for the objectives against the cost, effort and disadvantages of implementing them. Options are not mutually exclusive and not all fit every situation; they include avoiding the risk by not starting or continuing the activity, taking or increasing the risk to pursue an opportunity, removing the risk ...

Evidence an auditor accepts: Treatment option analysis per risk showing the options considered, their cost and benefit, and the one chosen; Insurance schedule, contracts and other risk-sharing arrangements tied to the risks they transfer; Documented retained and residual risk with the decision maker's acceptance
Common gap: Only mitigation considered; avoiding, taking or sharing never on the table
ISO 31000:2018 on compliance.theartofservice.com

ISO 22301 8.3.4 Resource requirements

Determine the resources needed to implement the selected continuity solutions, considering at least people, information and data, physical infrastructure such as buildings, workplaces and facilities with their utilities, equipment and consumables, information and communication technology systems, transport and logistics, finance, and partners and suppliers.

Evidence an auditor accepts: Resource requirement schedule per solution covering each required resource type; Evidence the resource is available or contracted at the required quantity and time; Reconciliation between required resources and the dependencies identified in the BIA
Common gap: Resource analysis covering ICT only, with people, finance and logistics unexamined
ISO 22301:2019 on compliance.theartofservice.com

COSO ERM principle 5 Attracts, Develops, and Retains Capable Individuals

The organization is committed to building human capital aligned to strategy and business objectives.

Evidence an auditor accepts: Talent strategy document; Succession plans; Competency frameworks
Common gap: No risk-specific competencies
COSO ERM 2017 on compliance.theartofservice.com

ISO 31000 5.4.3 Assigning organizational roles, authorities, responsibilities and accountabilities

Guidance: top management and oversight bodies should ensure that the authorities, responsibilities and accountabilities for every relevant risk management role are assigned and communicated at all levels of the organization. In doing so they should make clear that managing risk is a core responsibility rather than an add-on, and should identify the individua...

Evidence an auditor accepts: Named risk owners for each significant risk; RACI or equivalent assignment of risk management roles and authorities; Role descriptions and delegations that carry risk accountability
Common gap: Risks recorded without an owner, or owned by a committee
ISO 31000:2018 on compliance.theartofservice.com

ISO 22301 8.4.2 Response structure

Implement and maintain a structure of one or more teams responsible for responding to disruptions, with roles, responsibilities and inter team relationships clearly stated, collectively competent to assess a disruption and its impact against pre defined thresholds justifying a formal response, activate the response and the continuity solutions, plan actions,...

Evidence an auditor accepts: Team structure chart with roles, responsibilities and inter team relationships; Pre defined activation thresholds and the authority to invoke them; Named team members and alternates with competence evidence
Common gap: Alternates named on paper but never included in an exercise
ISO 22301:2019 on compliance.theartofservice.com

Do this for every line on your schedule

Paste the schedule and get this classification for every line at once, with the retained and transferred figures, the rate on line, the loss ratio, the findings and the questions for the broker. Six lines free, no account.

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Income protection · Kidnap and ransom