Legal and General (L&G) has launched its Key Person Protection offering, a business protection proposition for advisers.

It provides a monthly benefit to a business to help meet the costs of repaying a business loan, replacing lost profits, or hiring a temporary replacement employee.

The insurer says the new product has been launched in response to adviser feedback and will sit alongside its Share Protection, Relevant Life Plan and Executive Income Protection.

It is designed to reduce the financial impact on a business of a key employee being off work due to illness or injury.

It includes rehabilitation support service and access to wellbeing support to aid an employees’ return to work.

The business owner can choose the policy length that is between a five to 20-year term.

L&G market development manager Robert Betts said: “Given the events of the last year, it’s likely many business owners will be more aware of the financial impact of illness and so this product has arguably never been more important.

“Understanding the business protection needs of firms, especially SMEs, is key to unlocking opportunities for advisers and so we’ll be supporting this product launch with adviser training and webinar, helping to equip them for their client conversations.”

Lifesearch head of business protection and group Alan Richardson added: “Having a solution that allows our customers to protect their key people and their business lending repayments is crucial. L&G’s new Key Person IP policy will now form the missing part of the business protection jigsaw.

“This will enable advisers to provide a solution for loss of employees and directors, regardless of whether the ‘Anderson Principles’ are met, helping open up a better conversation and better results for the customer. Having a policy that can be taken alongside business lending at affordable costs, especially in view of the loans that have been taken to support firms through the pandemic, will also help business trade and grow with confidence.”