What factor is most likely to help a company determine the level of key person cover required for its chairperson?

The financial implications of the chairperson's death is a crucial factor in determining the level of key person cover required. This is because the key person insurance is designed to protect a business against the potential financial loss that would occur if an essential individual, such as a chairperson, were to pass away unexpectedly.

In assessing the financial implications, the company must evaluate various aspects, such as the chairperson's contributions to revenue generation, the potential loss of business continuity, and any invaluable relationships or intellectual capital that the chairperson brings to the organization. Additionally, the costs associated with recruiting and training a replacement can also be factored in, further highlighting the importance of calculating an appropriate level of cover to mitigate these potential risks.

While the chairperson's age, the company's overall revenue, and the length of employment may offer some context in terms of stability and contribution, they do not directly quantify the specific financial impacts expected from the loss of that individual within the organization. Thus, focusing on the financial implications is the most relevant approach to determining the amount of key person cover needed.