Keyman Insurance

Key person insurance (often called Keyman Insurance) is a business owned (or owned on behalf of) insurance that insures an employer or partnership against death or incapacitation of vital employees or partners.  This type of insurance provides financial protection against a multitude of financial losses that a business may suffer from the loss of a key person through illness, injury or death.

Coverage will depend on the policy, and may include compensation for:

• the cost of recruiting and training replacement staff to replace the key person
• lost profits attributable to the absence of the key person
• the loss of the key person as a guarantor of loans of the business
• the need to purchase a partner’s share of the business.