Key Man Insurance

Key person insurance is coverage taken out by an organization to protect the business against financial loss in the event of a key person’s death or disability. The key person maybe an owner, an executive, or anyone else whose death could create a financial hardship for the company. A key person insurance policy is owned and paid for by the company, insures the key person, and names the company as the beneficiary.

All successful companies, no matter the size, have key personnel as the foundation driving success. What happens if those rainmakers die or become disabled?