Key Man Insurance
Key Man Insurance Coverage in Hong Kong are usually owned by a company and/or business and are taken out to compensate the organization against losses resulting from the loss of a key income generating individual and will help to ensure continuity of production should a vital staff member become incapacitated or die during the period of their employment with a company.
Please note that Key Man Insurance Coverage does not provide an Indemnity, but instead compensates an organization for the loss of a key staff member with a fixed settlement as specified in the policy contract.
Key Man Insurance is related to standard life insurance, however the policy’s coverage does not extend past the period of employment of the individual (or key staff member) being covered. Simply put, if your organization obtains a Keyman Insurance Policy for a staff member, that policy will lapse should the employee being covered leave the company.