In Uncommon Sense (April 2002) Andy Magee, senior consultant with the Bourton Group, wrote, "Every business has its superstars. What happens when a bus hits a superstar? No one wants to think about it but there is a reason why insurance companies sell key-man insurance."
Even so, Magee pointed out, an insurance settlement doesn¿t replace the experience and expertise lost when a superstar dies. Let¿s examine key-man insurance, or company-owned life insurance (COLI). Consider, for example, General Electric during Jack Welch¿s tenure. Like him or not, and you¿ll find many in each camp, there¿s no doubt about GE¿s performance on his watch. Which leads to the question of whether any amount of money per se would have replaced Welch¿s leadership at GE.