Keyman Insurance
3442100
210319024
2008-05-05T13:25:39Z
Skysmith
6995
revert to non-vandalized version
{{Orphan|date=November 2006}}
{{merge|Key man insurance|date=July 2007}}
Keyman insurance is an important form of [http://www.brainstation.com.my/index.php?option=com_content&task=view&id=205&Itemid=106]. There is no legal definition for '''Keyman Insurance'''. In general, it
can be described as an [[insurance policy]] taken out by a business to compensate that business for financial losses that would arise from the death or extended incapacity of the member of the business specified on the policy. The policy’s term does not extend beyond the period of the key person’s usefulness to the business. The aim is to compensate the business for losses and facilitate business continuity. Keyman Insurance does not [[Indemnity|indemnify]] the actual losses incurred but compensates with a fixed monetary sum as specified on the insurance policy.
==Insurable losses==
There are four categories of loss for which Keyman Insurance can provide compensation:
#Losses related to the extended period when a key person is unable to work, to provide temporary personnel and, if necessary to finance the recruitment and training of a replacement.
#Insurance to protect profits. For example, offsetting lost income from lost sales, losses resulting from the delay or cancellation of any business project that the key person was involved in, loss of opportunity to expand, loss of specialised skills or knowledge.
#Insurance to protect [[shareholders]] or [[partnership]] interests. Typically this is insurance to enable shareholdings or partnership interests to be purchased by existing shareholders or partners.
#Insurance for anyone involved in guaranteeing businesses loans or banking facilities. The value of insurance cover is arranged to equal the value of the guarantee given by the key person.
==Who can be a Keyman?==
A Keyman can be anyone directly associated with the business whose loss can cause financial strain to the business. For example, they could be: a Director of a company, a Partner, key sales people, key project managers and people with specific skills or knowledge which is especially valuable to the company.
==Taxation==
The tax treatment for premiums paid for Keyman Insurance and the treatment of monies received from a claim vary between countries.
== See also ==
*[[Life insurance]]
*[[Term life insurance]]
*[[Critical illness insurance]]
*[http://www.brainstation.com.my Business Insurance]
==External links==
*[http://www.e-insuranceireland.com/insurance/keyman.asp Valuing the key person ]
*[http://www.life-assurance-bureau.co.uk/life-insurance/life-insurance-articles/keyman-life-insurance.htm Keyman Insurance – insures some of your biggest business risks. ]
[[Category:Types of insurance]]
*[http://www.topquoteonline.co.uk/articles/keyman-business-life-insurance.php Article about Keyman Insurance] Instant Quotes also available.
*[http://www.brainstation.com.my Learning more about keyman insurance ]