Definitions for "Key Man Insurance"
A life insurance policy bought by a company, usually a small business, on the life of a key executive, with the company as the beneficiary.
A life insurance policy that covers the life of a key employee of the company. It is payable to the company upon the death of the named employee. Losing a key employee can be costly to some companies in terms of training replacement personnel and in terms of customer and creditor confidence. The life insurance proceeds will help offset lost time, lost sales, and possibly lost lines of credit.
Insurance obtained by the Company on the lives of key employees, usually the chief executive officer and the person or persons ultimately responsible for continuing to develop the technology (see paragraph 26, Section IV above).