What is key man InsuranceKeyman Insurance is a form of life insurance taken out by a business to compensate that business for any financial losses that would arise from a death or injury of an important (key) person to the business. This can also be extended to cover the business in case that key person is no longer be able to work for whatever reason.
Many businesses rely on a single person (sometimes a handful of people) who are responsible for the majority of the income to the business, it can also be that this person(s) has a unique or hard to replace skill set or experience, or even maintains relationships that are very vital to the organization. Therefore this type of policy is usually owned by the business itself in order to compensate the business for losses incurred in the case of loss of those key income generators or those who play an important role in facilitating and running the business.Keyman Structure
Advantages of Having Key man insurance: