Key Employee

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Related to key person: Key Person Insurance

Key Employee

A very important employee. A key employee may have contacts highly beneficial to the company, may work hard and generate more revenue than any other employee, or may have some other skill that would be difficult or impossible to replicate in another employee. Often, but not always, a key employee is a manager. A company may purchase key person insurance to protect itself against the possibility that an employee may unexpectedly die or become unable to work, which would deprive the company of his/her skills.
References in periodicals archive ?
Key person insurance is expected to give peace of mind to a corporation that can ill afford to lose top executives.
The key person insurance is the alternative to forcing the company to pay out a large sum of capital that is depended upon or critical to the business's function.
Many business owners not only fail to identify and evaluate the potential risks their companies face, but are also unaware of the importance of a policy such as key person insurance or do not even know such a policy exists.
The loss of a key person can cause a business to be hit by a loss of profit, reduced sales, recruitment/training costs and disruption to their plans, to name but a few potential problems.
Key person insurance and an up-to-date and funded partnership agreement are just a couple of techniques to ensure business continuity after the loss or disability of an owner or key person.
A company owned a key person policy with several million in face value.
However, only one in four business owners--24 percent--has an individual disability insurance (IDI) policy, fewer than one in 10 (9 percent) of business owners have key person disability insurance, and fewer than one in 20 (4 percent) have a disability overhead expense plan in place.
The issue was most pronounced amongst small traders and partnerships, with 80 per cent of the former and 49 per cent of the latter saying that they would not survive the loss of a key person.
Many Macedonian newspapers treated this topic sporadically, always insinuating the then-Albanian government representatives with the mentioning of Musa Xhaferi as the key person in the rebranding of the telecommunication company.
It affects the ability to continue the business, and the ability to borrow money could be compromised if there's a death with a key person.
He was assigned key responsibility of training 10 selected cadres in Hindi and was perhaps the key person who briefed the 10 terrorists including Ajmal Kasab.