Every company has its keyman for the operation, he can be shareholder, CEO, management etc. The purpose of taking out the insurance is to compensate the employer for the loss of trading income that may result from the loss of the service of the key employee in case of death, sickness or injury.
Notes
If the employer is a sole proprietor or a partnership and the insured person is the sole proprietor or a partner, the premiums are not deductible. This is because a keyman policy is applicable only in the case of an employer and employee relationship. A sole proprietor or partner is not an employee. The premiums are regarded as private expenses.
Sources: https://www.ird.gov.hk/eng/faq/keyman.htm
