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 ?
Finnish pharmaceutical company Orion Oyj (HEL:ORNBV) announced on Wednesday the decision by its board of directors on a new share-based incentive plan for the group's key persons.
The first difference is formation of a new equation to determine the key person in every cluster that is generated by the CF [14], in order to handle grouping consistency between frames.
This could be used to protect against a fall in profits, recruiting and training a replacement and the loss of important business contacts if the key person is not there to maintain relationships possibly creating the danger of clients and suppliers losing confidence in the organisation.
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.
Key person insurance can cover the costs resulting from loss of revenue, loss of intellectual capital, downtime, and the training and recruitment fees associated with replacing that individual.
It provides tailored life insurance solutions that protect SMEs against the death or critical illness of a key person by providing Key Person, Liability and Partner protection."
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.
Every time a key person life insurance policy is in place and the key person has retired and not remaining with the company; that policy becomes unnecessary.
Yet surveys show that most business owners aren't even aware that they can buy insurance to cover these exposures with products like business overhead expense policies, individual disability insurance (IDI), key person disability insurance, and disability overhead expense plans.
The 24 December events are surely the ones that shook the entire country and the key person in them was former president of the country and current leader of the largest opposition party SDSM, Mr.
Key Person Insurance: A life insurance policy placed on the life of an important person within a company.
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.