What Is Key Man Insurance? Absolutely every business has at least one individual who is essential to maintain it alive. It doesn't matter how solid your business may seem. It doesn't matter if every employee sees the others like his family. Believe it or not, there will always be one man to keep your business running. It is not unusual to see a business fall after someone leaving it. And this rule doesn't apply to businesses only, but to every domain. A team might lose its good results after one of the top players leaves. A political party may lose its authority when one of its leaders is gone. Even when you play a game, a knight or a warrior may kill your kingdom if he leaves. When it comes to your business, the key man may even be you. What about your best sales agent? What about the best waiter in your restaurant? If you work over the Internet or you run a web store, for instance, the webmaster may be the one responsible for everything. In conclusion, when this key individual is out of business, your entire business takes a risk. The inability to work may come from a wide variety of reasons. Besides, the more successful your business is, the higher the risks you take are. The key man insurance is that specific form of insurance that protects your business against such risks. The importance of such insurance is obvious. But what is key man insurance after all? The policy is taken to prevent the potential losses resulting from unexpected situations affecting a contributor. A death can be one of the reasons, not to mention about a specific illness. The inability to work anymore is also included. In such cases, a responsible business owner knows that it might take some time until he finds another individual who is just as good. Meanwhile, the losses must be covered. There are cases when a business cannot survive for too long without this special individual, hence the importance of this insurance. Any losses are basically compensated for. The time wherefore this insurance is valid depends from one business to another, but the time frame is usually based on the time your key individual is indispensable to the company for. The insurance also varies from one company to another. For instance, a young business may benefit from it for just a few years, without the chance to extend it. Before signing up, make sure you know what you sign for and what the circumstances wherefore you will benefit from the insurance are. The death is one of the rare events that may imply getting back to your insurer. On another hand, an injury is more likely to step in, no matter whose fault it was. The disability to work is yet another popular situation, so it must be included in the terms. This is why the policy must encompass both these unexpected situations, aside from death. If you are not sure what you are doing, don't hesitate to seek help from a lawyer.