Potentially anyone who affects revenue. A key person is not only you as the business owner but anyone whose loss would affect your business. Any employee that you would struggle to do without (i.e. your sales person) could be a key person... each business is different.
Key Person Cover allows your business to keep running, even when you lose someone who has a big impact on revenue. It could be your top sales person, or the admin assistant who keeps everything running.
Key Person Cover injects cash into your business to cover costs such as recruiting a new person, paying off debt, and meeting contractual obligations.
If you want your business to survive (and who wouldn't) it makes sense to plan for the worst.
Anything you want... any insurance claim proceeds are paid directly to your company so you choose how best to utilise the funds. You may wish to pay off some of your business debt, offer an above market salary so you can head hunt a replacement person quickly or cover lost revenue... it's your choice.
