{"id":4840,"date":"2026-10-25T03:34:00","date_gmt":"2026-10-25T03:34:00","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-key-person-insurance-for-single-owner-company\/"},"modified":"2026-10-30T05:21:42","modified_gmt":"2026-10-30T05:21:42","slug":"key-person-insurance-key-person-insurance-for-single-owner-company","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-key-person-insurance-for-single-owner-company\/","title":{"rendered":"Key Person Insurance for Single Owner Company in Florida"},"content":{"rendered":"\n
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Miami CPA Firm | Key Person Insurance in Florida<\/p>

Key Person Insurance for Your Single-Owner Company<\/h1>

Life insurance designed to help a Florida business keep running and protect the people who depend on it, reviewed with a CPA's view of tax and cash flow.<\/p>

Request a coverage review<\/a><\/div>
Request a coverage review<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n

By Nischay Rawal \u00b7 Published October 24, 2026<\/p>\n\n

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Key person insurance for a single owner company is a life insurance policy the business buys on the owner’s life. If the owner dies, the company receives the death benefit. This matters most when one person holds the clients, the pricing and the daily work. This page explains how the policy works, who owns it, and where its limits are. Insurance is offered by the licensed agent, separately from the accounting practice.<\/p>\n

What Key Person Insurance Is and Who It Fits<\/h2>\n

Key person insurance is a life insurance policy a company buys on a person whose death would cause it financial harm. The company owns the policy, pays the premiums and receives the benefit. The Insurance Information Institute<\/a> describes it as a way to compensate a business for financial losses caused by the death or disability of a key employee.<\/p>\n

A single-owner company is the clearest case. One owner often holds the client relationships, sets prices, manages licenses and runs daily operations. If that owner dies, no one else is ready to step in. Bills keep coming while revenue may slow.<\/p>\n

A business with two or more owners has another path. A co-owner can keep work moving, and a buy-sell agreement can set how an owner’s share changes hands. A sole owner has no such partner, so the planning question looks different.<\/p>\n

The insured person is usually the owner. The same structure can also cover another essential person, such as a manager the company cannot easily replace. Florida law ties a business’s insurable interest in a key person to written consent obtained before the insurance is bought, under Fla. Stat. \u00a7 627.404<\/a>.<\/p>\n\n

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Not sure what your next step is?<\/h3>

Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.<\/p>

Schedule a coverage review<\/a><\/div>
Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n

What the Policy Covers and How the Proceeds Can Be Used<\/h2>\n

The policy pays a death benefit to the company when the covered person dies while the policy is in force. The company decides how to use the money. The policy does not require any specific use.<\/p>\n

Companies often apply the proceeds to:<\/p>\n