Keyman insurance

What is Keyman insurance?

Keyman refers to key persons in companies or enterprises (such as senior managers or the managing boss). Keyman insurance refers to one of insurances that a company may be insured according to economic loss brought by the death of its key managers.

If the key person passes away, his death to some extent brings forward economic loss for the company. Hence, a company under good management must buy keyman insurance to avoid causing economic upheaval to the company in event that the key people leave the world.

Why Key Person Insurance Matters

The loss of an owner or a key personnel whose contributions are integral for a business’ success can be devastating. It can result in a drastic loss of profit, customer base and even reputation. Protecting your business against such risks is often a prudent step toward business continuity, while addressing the concerns of your key stakeholders.

Key people dominates a role of life-and-blood in the entire business. Without them, it may bring losses to business to certain extent. Key Man Insurance is a policy taken by an employer to mitigate financial losses in the event of a loss of key individual, whether it is the owner, important senior executive or a key contributor whose knowledge, work, or overall contribution is considered uniquely valuable to the business. Although it does not indemnify actual losses, the company will obtain a sum of insurance premium to make up for the loss so as to prevent itself from falling into the dangerous situation of liquidity problems.


 

The benefits of Keyman Insurance

It can be reflected from the event that Gianni Versace, the renowned Italian fashion designer, was murdered years ago. The whole fashion kingdom at that moment almost collapsed without the kingpin all of a sudden. Thanks to the purchase of tens of millions dollars of keyman insurance, the Gianni Versace company could survive the cold winter. On the contrary, without buying keyman insurance, the death of, the boss of Hong Kong GOLD Group, Mr. LAM Sai-Wing, in 2008, led to a sharp fall in stock price by 60% in one day.

A note to smart bosses: if you always worry about when your keymen would leave your company for your competitors, you need to think about buying them the keyman insurance. This is beneficial to both parties in creating a win-win situation!

 


 

 
 











 
Company background
Mission and vision
Management team
Message from CEO
Brand Story
Awards and Recognition
People and Culture
Business Partners
Media and News
 
Life Insurance
Medical
CritIcal Illness Insurance
Investment Link Assurance Scheme
General Insurance
Retirement/Annuity
Accident Insurance
Keyman Insurance
MPF
 
Family Protection needs
Retirement Planning
Education Planning
Wealth Accumulation
GMD Platform
Policy Enquiry
Consultancy Force
Corporate Staff
 

Room 501-4, 5/F, Harcourt House,
39 Gloucester Road, Hong Kong.
Tel : (852) 2236 6999
Fax : (852) 2236 6900
Email : info@gdwm.com.hk