Most business rely on the operations and direction of specific individuals within the company, and without their input the business could be in jeopardy. The Key person (aka “key man”) insurance is life or disability insurance that covers the loss of a key person within your business. In some cases this may include the owner(s), especially in the case of small businesses. The protection works by compensating the business in the event of death or injury to an individual who is essential to the existence of the business.