OSIGURANJE KLJUČNE OSOBE
KEY PERSON INSURANCE

Summary/Abstract: The aim of this paper is to present the key person insurance in the company, as a special way to overcome the financial problems arising with the death of the key person(s) or key person's permanent or temporary incapacity due to severe illness (with possible fatal outcome). Some of the problems that arise in the company include reduced profitability, costs related to the engagement and training of the new key person, the decline of business reputation and credit rating of the company. The text speaks of the importance of this type of insurance and reveals the reasons which impose the need to conclude this type of insurance. Determining the term of the key person brings us to the circle of people who could the insured in this case. Key person insurance is not a special type of insurance. This is a special way of using traditional life insurance and accidents insurance contracts for business purposes and not for personal ones. The authors, also, have attempted to answer the following question: How do we fix the amount of coverage on the insurance policy? Key person insurance is used in many countries, however there is no market in our country.

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