Keyman Insurance

Key Man Insurance, also known as Key Man Insurance is a special type of life or accident insurance that a Company takes out for a key person. Key People can be managers, executives, or other employees whose skills, knowledge, and experience are essential to the success and stability of an organization.
The main purpose of Key Person insurance is to mitigate or compensate for financial losses that could occur due to the unexpected loss of that key person, either through death or serious illness. Insurance benefits can be used, for example, to finance the search and training of a replacement, to compensate for lost earnings, or to cover loan obligations guaranteed by the key person.
Keyman insurance is therefore a central risk management tool for companies to minimize financial risks or create liquidity in times of crisis that may be caused by the loss of a key person. This insurance also shows investors, lenders, and partners that an organization proactively manages risks and is prepared for unforeseen events, which builds confidence and can improve creditworthiness or increase the desire to invest.