Key Man is the type of insurance coverage that companies take out to protect against losses that can occur in the event of the loss of an important company pilot. A purchase-sale contract, entered into by an owner and a staff, would offer employees the opportunity to own the business after the owner`s death. As soon as an insurance company makes the payment of the death or guardianship of the owner, employees can use the product to buy the business as a whole, this time from the next keen, as defined by the owner. Key personal insurance, also known as key insurance, is an important form of commercial insurance. There is no legal definition of “keys of persons” insurance. Generally speaking, it can be described as an insurance policy taken out by a company to compensate that company for financial losses that would result from the death or prolonged incapacity of a significant member of the company. To put it simply, key personal insurance is standard life insurance or trauma insurance that is used for business succession or business protection purposes. The duration of the policy does not extend beyond the period of usefulness of the key person for the company. Key person policies are typically owned by the company and the goal is to compensate the business for losses resulting from the loss of a significant revenue generator and facilitate business continuity.
Key insurance of persons does not compensate for the actual losses incurred, but compensates them with a fixed sum of money, as stated in the insurance policy.