In almost every company, it is possible to mark one person, or even several, whose departure will result in severe and significant damage to its activity. Whether it is a technology company or a restaurant chain, it is likely that there will be a key person or persons who are sometimes responsible for the strategy, marketing, financing, development, or any other area, in the absence of which it will suffer a significant blow.

In order to allow the company to reduce risks and enjoy financial coverage if, God forbid, the key person can no longer perform his role, key person insurance was created.


When does key man insurance apply?

  1. When the key person dies
  2. When the key person is permanently disabled


How do you define a key person?


A key person is a significant employee of the company. If he dies or suffers a permanent disability, one or more of the following scenarios occur:


  1. The business or company experiences damage in product development
  2. There is a loss of markets
  3. Loss of unique knowledge and experience
  4. There is damage to production.
  5. There is damage to the company’s revenues and profits.
  6. Loss of credit sources



How is the Amount of Coverage Calculated as Part of the Key Man Insurance?

Simply put, the coverage provided is determined according to the damage that will be caused as a result of the cessation of the normal activity of the key person in the company. The value of the company has nothing to do with the amount of coverage but only with the income, the amount of financial loss caused by the markets, the damage to production, or the loss of credit sources, for example.


Lamda has Insurance Solutions for Professional, Comprehensive, and Customized Key Personnel

At Lamda, we now arrange key man insurance, which provides peace and security to companies and organizations that know how to analyze the risks the company faces in the absence of the key personnel. Our insurance experts, who have a legal education, will analyze with you the law, the regulations, and the various insurance policies and will adapt the insurance that suits the nature of your activity and that of the key person.