Insureon Blog

What is key man insurance?

10. July 2014 08:59
Middle-aged businessman reading documents

Some businesses depend on the leadership or know-how of certain individuals. Key man insurance is designed for a business that wants protection against losing a crucial member of its team.

This policy is essentially a life insurance policy that small businesses buy to cover the loss that results when an irreplaceable member of the company dies. Key man insurance covers:

Key man insurance is one of the less common small business insurance policies. However, it can be crucial for companies whose operations rely on specific employees.

What businesses need key man insurance?

Not every business needs a life insurance policy to protect its founder, CEO, or specialist personnel. Here are a few examples where this insurance is useful:

Tags:

Insurance Terms Explained | Risk Management | Small Business | Small Business Risk Management | Tips for All Small Businesses

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