Keyman Insurance: What is it and does your company need it? |Camori Investments

Keyman Insurance: What is it and does your company need it?

Keyman Insurance: What is it and does your company need it?

Does your company have those employees that you’d like to keep and never let go of? These employees can be high level executives, or those who have very important roles that you just can’t imagine being without. While your company more than likely has these types of employees, sometimes life can cause the unfortunate to happen and you’re left with an employee who is severely ill or injured. These employees are referred to as keyman or keypersons, and in the event that unfortunate does happen, there’s insurance that can protect your company.

What is keyman insurance?

Keyman insurance is structured similarly to life insurance, with the exception of the ownership of the policy. With this type of insurance, it’s structured so that the company holds ownership.

Does your company need keyman insurance?

For larger companies and corporations, the loss of a keyman employee temporarily or permanently can have negative financial consequences. Not only can finances be affected but so can the overall productivity of the company. It’s important to identify those within your company who are considered to be in keyman roles.

For small businesses, the keyman is often a partner. Therefore, a keyman insurance policy will protect the partner who is still able to work their role within the business.

With standard life insurance, it’s important to protect your family against financial loss in the event that illness, an accident or death occurs. With keyman insurance, rather than protecting your family, you’re protecting the productivity and profitability of your company.

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