I am a partner in a security equipment exporting firm. We have been recommended to procure a Keyman’s insurance policy. Can you explain the policy and also who can buy it?In insurance parlance, a person who is a major contributor to the growth of an organisation and whose absence may affect the continuity of the business is a Keyman. Keyman Insurance policy is mostly a pure term life cover to protect the organisation from adverse financial consequences arising due to death of the key person and ensure continuity of the business. If keyman leaves the company either the policy can be surrendered or assigned absolutely to the keyman. Your firm can also take such policy on your life.
