key employee insurance

Key employee insurance is insurance whose purpose is to indemnify a business for the loss of earnings brought about by the death of a key officer or other employee.

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Additional Information

It is life and/or disability insurance on one (or more) key person(s) whose loss or unavailability may cause loss of profit, loss of goodwill, or an increase in expenses. This type of insurance helps finance the search and training of a successor or compensate for a reduction in profits.


Related Terms

Key person life insurance refers to a plan to provide benefits for the company should a key...