Key-Person Insurance

Key-Person Insurance

Protect your business with Key-Person insurance. If you own or operate a small to medium sized business it is important to think about what would happen if you or one of your key employees were suddenly unable to perform essential daily duties that the business depends on to remain profitable.

Most businesses are very dependent on a few key people within the company. Owner or key employee knowledge and above-average time commitment would make it very difficult to find a qualified replacement quickly.

Without constant direction and effort from Key employees or owners, businesses can suffer devastating consequences resulting in lost opportunities, a decline in sales and revenue, lost or strained strategic alliances leading to losses and even bankruptcy.

In our personal lives, it is very commonplace to protect our families with life and disability insurance in the event we are no longer able to earn a living. You should give that same consideration to your business.

One way to do that is through Key-Person insurance.

Key-Person insurance (commonly referred to as key-man Insurance) is a life or disability policy placed on the owner, director or key employee of a company who is crucial to the business, where the business or a related party (such as a shareholder or lender) is the beneficiary. Such a policy will provide timely funds to your business
to give it time to react to your absence or a key employee’s absence.

Proceeds of the policy could be used to pay off debts or finance losses.

We know everyone is busy today but do not put it off. Think of how hard you have worked and what resources your business would need to deal with the unexpected departure of a Key employee. Businesses should not fail due to lack of planning.

Each business and situation is a little different, call us today and we can look at as few options tailored to your business or unique situation.