Key person insurance, also known as key man insurance, is a form of life cover that protects your business from loss as a result of losing the services of critical individuals. How would your business survive if you died or suffered a debilitating illness or injury?
For businesses that rely on important people for their knowledge, experience, capital or client base, key person insurance is an important protection to consider. A key person is an individual whose continued association with a business provides that business with a significant and direct economic gain, this covers more than just profits. It can also include; capital injections, cost efficiency, goodwill, access to credit and business contacts among other instances.