Covid-19 Business Interruption Insurance vs Keyman Insurance

Key man insurance only covers your losses when the person named in the policy dies or becomes ill. ... Business interruption insurance, often included with commercial property insurance, covers lost revenue when your property is damaged or destroyed by a covered property event. Business interruption insurance has emerged as very high in the graphs as the Covid crisis has evolved. With business interruption at the center of losses, there are pressures on carriers to the cover claims. Many states had proposed legislation that would require insurance companies to cover business losses caused by COVID-19.  Many in the insurance industry would prefer the federal government to back an insurance plan that would support businesses that suffered BI losses due to COVID-19. This is what happened after Sept 2001 with terrorism insurance. While the idea of federal pandemic insurance has gained some momentum, we’re not likely to see much progress in the near future, given the substantial effort required. Whereas the Keyman Insurance helps business: Key man insurance is simply life insurance on the key person in a business. ... Here's how key man insurance works: A company purchases a life insurance policy on the key employee, pays the premiums and is the beneficiary of the policy. If that person unexpectedly dies, the company receives the insurance payoff.