What does Key Man Insurance mean? Read on to discover the definition & meaning of the term Key Man Insurance - to help you better understand the language used in insurance policies.
Key Man Insurance
Life insurance owned by a business entity on the life of a key individual that will, in the event of his or her death, offset a loss in earnings and provide the funds necessary to find, hire, and develop a replacement. It is designed to offset losses resulting from the death of a key person, such as reduced sales, interruption of a vital research project, flow of production, or an impaired credit standing.
We hope the you have a better understanding of the meaning of Key Man Insurance.