Key person insurance

Key person insurance is insurance for companies that have a key person, a person whose expertise, skills or connections are essential to the proper functioning of the company. This person can be an officer, partner, sales representative, accountant, engineer, etc.

The purpose of Key Person Insurance is to protect the business in the event of the death or disability of that key person. If that person is absent, the company may suffer a significant loss of turnover or productivity, which may endanger its survival.

Key man insurance therefore allows the company to receive compensation in the event of the death or disability of the key person. This allowance can be used to pay for expenses related to the loss of that person, such as recruitment expenses, training expenses, redundancy payments, etc. It can also be used to compensate for the loss of turnover or productivity.

It is important to note that Key Man insurance is different from traditional Death and Disability insurance, as it is specifically designed to cover the risks associated with the loss of a key person in the business. It can be subscribed by any company that has a key person, regardless of their sector of activity or size.

In summary, key person insurance is insurance for companies that have a key person, i.e. a person whose expertise, skills or connections are essential to the proper functioning of the company. This insurance allows the company to receive compensation in the event of the death or disability of the key person, in order to cover the costs related to his loss and to compensate for the loss of turnover or productivity.