Both products are forms of business protection insurance, but they address different risks and are structured differently. Key person insurance protects the business itself from the financial impact of losing someone whose skills, relationships, or revenue contribution are critical — for example, losing a key salesperson, founder, or specialised technician. The proceeds compensate the business for lost revenue, recruitment costs, training a replacement, or covering business debts. Shareholder protection insurance (also called partnership insurance or buy/sell insurance) is specifically designed to fund the buyout of a deceased or disabled shareholder's equity. The structure is normally tied to a buy/sell agreement: when a covered event occurs, insurance proceeds flow to the surviving shareholders (or the business) to buy out the affected shareholder's stake from their estate or family. Both can use the same underlying insurance products (life, TPD, trauma) — the difference is in policy ownership, beneficiary structure, and the contractual agreements that govern how proceeds are used. Many businesses need both: key person cover for revenue protection and recruitment, and shareholder protection cover for equity buyouts. The two policies can be held in parallel on the same individuals, with separate sum insured amounts and separate documented purposes. Discuss the structure with a licensed adviser who can coordinate with your accountant and lawyer to set up appropriate documentation.