Building resilience into your business: why key person insurance is worth thinking about

So, it’s worth considering how your practice would manage if someone in a key role were unexpectedly unable to work for an extended period. 

Why planning ahead matters 

Vets spend years developing their clinical skills and specialisms, building relationships with their clients and team. In smaller practices in particular, a significant amount of responsibility may rest on just a few individuals. 

If one of those people is unavailable the impact can build quickly, including: 

• fewer appointments 

• increased pressure on the team 
• income falling while costs stay the same. 

It can quickly move beyond a staffing issue and become a business problem. Planning for situations like this isn’t about expecting the worst – it’s about giving your team the best opportunity to continue to provide excellent care while managing unexpected changes. 

A possible way to protect the practice 

Some practices choose to put key person insurance in place, as part of their wider business planning. This is a policy taken out by the business on someone whose significant contribution would be difficult to replace 

It does not remove the emotional or logistical impact of being without this colleague, but it can provide financial breathing space while the practice adjusts.  

In practical terms, cover provides financial support which could be used to: 

• manage a drop in income 

• bring in a locum 

• recruit and train a replacement 

• maintain cash flow. 

It can also give partners time to make considered decisions, rather than reacting under pressure, and gives the wider team time to focus on supporting each other and continuing to do the work they do best. 

Who is a “key person”? 

This is not always obvious. In a veterinary practice, it could be: 

• owners or partners 

• senior or specialist vets 

• clinical directors 

• practice managers 

• anyone with strong client or referral relationships. 

A useful test is simple: If this person wasn’t here tomorrow, how would the practice cope? 

A simple example 

Imagine a two-partner practice where one partner carries out most of the clinical work and has long-standing client relationships. 

If they were suddenly unable to work, the practice might experience: 

• a drop in bookings 

• clients choosing other practices 

• increased strain on the remaining team. 

A financial buffer could help the practice bring in support quickly and keep things stable while longer-term plans are put in place. 

Putting this into perspective 

For veterinary practices, the biggest asset is not the building or equipment. It’s the people, those who are treating the patients, working with clients or keeping the business running smoothly. 

Taking time to understand how reliant the business is on key individuals is worthwhile. 

Key person insurance is one way practices choose to manage that risk. It won’t solve every problem, but it can help provide stability for the people in your team when it matters most. 

If you’d like to talk through how this might apply to your own practice, or simply sense-check whether you have any gaps, Chase de Vere, our financial partner, are always happy to have an informal conversation. 

About Chase de Vere and the BVA partnership 

Chase de Vere is a partner of the British Veterinary Association (BVA). 

Our advisers understand many of the realities vets face – including moving between practices, locum work, self-employment, ownership and changing working patterns. 

As part of this partnership, BVA members can book a free initial chat with one of our specialist advisers to ask questions and gain clarity with no obligation. 

Book a free initial chat with a Chase de Vere adviser