A keyman insurance policy protects the business financially if the key person of the business organisation passes away. Though the business organisation cannot replace the skills and expertise of the key person with the policy it can help the business organisation deal with the loss and find a replacement for the person.

Definition: Key employee or keyman is a term used specifically for an important employee or executive who is core to the operation of the business and his death, disability or absence could prove to be disastrous for the company or organization.