An important component of the business market is identifying and protecting the key employees that contribute to the value of the business. Owner-employees are key persons with a value no less than their business interest. But in almost every business, there are a few employees that greatly enhance the business. Determining the value of a key person, the employer need only ask himself a few basic questions about the loss of a key person.

• Would the company require some adjustment time before business could continue?
• Would sales in progress be completed?
• Would profits and earnings be affected?
• Would creditors demand payment or restrict future credit?
• Would the loss of unique talents and skills disrupt the work of others?
• Would future business plans that involve this key person be disrupted?

By putting relative values on each of these factors and relating that to sales and profits, it is possible to quantify the value of the key employees. Add to that amount any insurance needs to complete a business continuation solution and the potential loss to business is determined.