Key Person Insurance
When the person everyone leans on is suddenly out—your founder in hospital, your top salesperson grounded, your technical lead unable to code—the whole business feels it.
Revenue dips. Lenders start asking questions. Projects stall and customers get nervous. Key person insurance (also known as key man insurance) steps in as the safety net you set up on your calmest day for your hardest day. The business owns the policy and receives a lump sum (life insurance) or ongoing benefits (certain living benefits such as disability insurance and critical illness insurance) if tragedy strikes.
That money becomes working capital to steady cash flow, cover payroll, keep suppliers paid, recruit the right talent, and honour the promises you’ve made to clients. For Montreal small business owners, it’s a practical way to protect jobs, reassure vendors and bankers, and preserve the value you’ve worked years to build—so a temporary crisis doesn’t become a permanent setback.
Who is a "Key Person"?
Think about anyone whose knowledge, relationships, or production would be hard to replace within 6–12 months. Common examples: a founder who signs major clients, a chef-owner whose name drives reservations, a software architect who holds the system map in their head, or a sales director who manages the biggest accounts in Québec and Ontario. If losing them would materially affect profit, credit, or growth, they are a key person.
What The Benefit Can Cover
Bridge payroll and overhead while you recruit. Fund a signing bonus or interim executive. Protect loan covenants and reassure lenders. Offset lost gross margin from delayed projects. Finance training to transfer institutional knowledge. Support a transition plan if ownership or structure needs to change. In short: buy time and options when you need them most.
Why Work with M Bacal Group
For over 30 years, M Bacal Group has guided Montreal entrepreneurs with the same care we bring to our own family business. We listen first, design precisely, and stay present long after the policy is issued. That means proactive reviews as your company grows, lender-friendly documentation when you need it, and hands-on claims support if the unexpected happens. We serve clients in Montreal and across Québec and Ontario.
Let's Protect What You Built
Your people are the backbone of your business. Key person insurance helps ensure a temporary loss doesn’t become a permanent setback. Reach out today to explore coverage that reflects the real risks—and the real value—inside your company.