p>Keyman Insurance (now more commonly called “Key Person Insurance”) is a type of business protection which pays a cash lump sum to the insured company in the case of the death or serious illness of an employee covered by the policy.
A key person is an employee considered to be crucial to the running of a business and likely to be someone that the company would find hard to replace. For example, this could be a:
Founder of the business or chief executive
Company director
High-performing sales person or business development manager
Senior employee with business-critical responsibilities such as an IT manager, product designer or head engineer