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

27 Jul 2026

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Veterinary practices are built around talented and dedicated people. Whether it’s a vet with strong and long-term client relationships, a practice manager who keeps everything running smoothly, or a partner who leads the business, every person on the team plays an important role in the success of the practice.

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

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

Whyplanning aheadmatters

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.

Ifone of those peopleisunavailabletheimpact can build quickly, including:

  • fewerappointments
  • increasedpressure on the team
  • incomefalling while costs stay the same.

It can quickly move beyond a staffing issue and become a business problem.Planning for situations like thisisn’tabout expecting the worst –it’sabout giving your team the best opportunity to continue to provide excellent care while managing unexpected changes.

A possible wayto protect the practice

Some practices choose to putkey person insurancein place, as part of their wider businessplanning.Thisis a policy taken out by the business on someone whose significant contributionwould be difficult to replace

It does not remove theemotional or logisticalimpact ofbeing without thiscolleague, butit can provide financial breathing space while the practice adjusts.

In practical terms,cover provides financialsupportwhichcould be used to:

  • managea drop in income
  • bringin a locum
  • recruitand train a replacement
  • maintaincash 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 alwaysobvious.Ina veterinary practice, it could be:

  • ownersor partners
  • senioror specialist vets
  • clinicaldirectors
  • practicemanagers
  • anyonewith strong client or referral relationships.

A useful test issimple:Ifthis personwasn’there 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:

  • adrop in bookings
  • clientschoosing 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

Forveterinary practices, the biggest asset is not the building or equipment.It’sthe people, those who are treating the patients, working withclientsor keeping the business running smoothly.

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

Key person insurance isone waypractices choose to manage that risk. Itwon’tsolve every problem, but it can help provide stabilityfor the people in your teamwhen it matters most.

Ifyou’dlike 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, arealways happy to have an informal conversation.

About Chase de Vere and the Ȥҹapp partnership

Chase de Vere is a partner of the Ȥҹapp (Ȥҹapp).

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

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

Important information

This article is for information purposes only and does not constitute personal financial advice. Decisions should be based on your individual circumstances, and you should seek personalised advice before taking any action.

Past performance is not a reliable indicator of future performance.

Levels and bases of, and relief from taxation is subject to change.

The value of your investment can go down as well asup,and you may not get back the full amount you invested.

The Financial Conduct Authority does not regulate taxation advice, estate planning, inheritance tax planning, cashflow modelling,willsor trusts.

The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change. You should seek advice to understand your options at retirement.

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