---
title: "Key Person Insurance"
description: "Key person insurance with Spot: an amount you can explain, ownership and beneficiary set up for the business, and proposals compared on term and premiums."
canonical: "https://spot.insure/insurance/key-person"
page-type: "product"
entities: ["Spot"]
entity: "Spot"
page-role: "product"
---

Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, check_driving_insurance for source-backed rideshare and delivery requirements by state or province, compare_providers for sourced comparisons, get_provider_score for a published Reliability Score, get_rankings for current provider rankings, search_provider_reliability to filter Reliability Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication.

[Human-readable page](https://spot.insure/insurance/key-person)

## Agent Guide

**What this page is:** Key person insurance with Spot: an amount you can explain, ownership and beneficiary set up for the business, and proposals compared on term and premiums.

**Limits (do not over-claim):**
- Describes Spot's own service; it does not establish coverage terms or outcomes for any company.

**Related pages:**
- [Spot home](https://spot.insure/) — product overview
- [Sitemap](https://spot.insure/sitemap) — inventory of all public pages

# Spot for Key Person Insurance

Get quotes from key person insurance providers with Spot.

We help you decide who to insure and for how much, then compare key person quotes with you and help you buy.

- An amount built from revenue, replacement cost and downtime
- Owner and beneficiary set up so the business gets paid
- Keep your broker or switch, with no commissions on premiums

[Get Started](https://app.spot.insure/signup?coverage=key-person). Spot is not an insurance carrier and takes no commissions on premiums; you can keep your broker or switch.

## How Spot helps

1. **Explain why this person matters.** Your Spot team collects the person’s role, ownership share and compensation, the relevant business financials and any existing coverage, and writes up how you arrived at the amount you’re asking for.
2. **Make sure the business gets the payout.** Spot checks who owns the policy, who’s insured and who receives the proceeds, so money meant for the business isn’t set up like a family life policy. Buyout funding and disability stay separate conversations.
3. **Compare the cost over the life of the policy.** Brokers take your request to market, and we compare each proposal’s term against how long you expect to need it, with premiums over that period, renewal options and what’s guaranteed.
4. **Keep the policy current as the team changes.** The policy, application and your reasoning for the amount stay together. When a role changes or the term nears its end, raise it in Slack and your Spot team brings the review forward.

## Who we help

- **Founder-led companies.** Customer relationships, product knowledge or fundraising may rest on one or two people the business couldn’t quickly replace.
- **Partnerships.** A partner who runs daily operations leaves a gap in the work itself, separate from any question about buying out their share.
- **Businesses with a hard-to-replace specialist.** A key person doesn’t have to be an owner. A senior engineer or top salesperson can be the one the business relies on.
- **Small teams with concentrated knowledge.** When a handful of people run sales, product and operations, losing one of them can stall the business while you recruit and train a replacement.

## When to get this coverage

- **Your revenue depends on one person.** If a founder holds the key customer relationships or the technical knowledge, estimate what the business would lose if they died and how long a replacement would take.
- **A co-founder’s role or ownership changed.** The person you insured may no longer be the one the business leans on, or the amount may no longer match their contribution. Update both before the next premium is due.
- **You’re hiring a senior leader the company will depend on.** Add them to the conversation once their role is clear. A non-owner employee can be a key person too.
- **Your term is ending.** Ask what renewal options the policy offers and which values or benefits are guaranteed. Start early, while you can still compare them with new proposals.
- **You’re also thinking about a buyout or disability.** Funding an owner’s buyout, covering overhead during an owner’s disability and protecting the business after a death are different objectives. Spot keeps them apart so one policy isn’t asked to do another’s job.

## Common questions

Also known as key man insurance, keyman insurance, key person life insurance, key man life insurance and key employee insurance.

### Who receives the money from key person insurance?

Whoever the policy names as beneficiary. For key person protection, sometimes called key man insurance, that’s usually the business, which is a different purpose from life insurance for the person’s family. Spot checks the owner and beneficiary before you apply.

### Does key person life insurance pay if someone becomes disabled?

No. A life policy addresses death. Key person disability is a separate option, and Spot can compare it alongside if the risk of someone being unable to work matters to you.

### How much key person insurance should we buy?

Start from what losing the person would cost: their contribution to revenue, recruiting and training a replacement, and the time before that replacement is effective. Your Spot team helps you put that estimate together for the application.

### What will the insured person need to do?

The application may ask health and lifestyle questions, and their answers need to be accurate. Spot asks what has to happen before coverage takes effect so you know when the policy starts.

### Can the advisor who handles our other insurance place this?

Yes. Spot works with your broker or agent on the key person application and takes no commissions on premiums. If you’d rather use someone else for life coverage, we help you switch.

## More

- [Business Insurance by Coverage](https://spot.insure/insurance)

## Agent and Developer Resources

- [Markdown page](https://spot.insure/insurance/key-person.md)
- [Developer resources](https://spot.insure/developers)
- [Public MCP server](https://spot.insure/mcp)
- [MCP server manifest](https://spot.insure/server.json)
- [OpenAPI description](https://spot.insure/openapi.json)
- [Public page index](https://spot.insure/llms.txt)