- A Key Man Insurance is a cover purchased by a company on the life of an employee who is vital to the continued profitability of the organization
- This is to protect the company against loss of profit or cost of replacing the key person in the event of his/her death or disability.
- It is similar to Business Continuation InsuranceThe contract may be a life insurance cover or health insurance.
- Ideally, the key man should be covered with both.
