Businesses typically depend on one or two key players for their success. This is true for small businesses especially. Every member of a team is invaluable but there are certain employees that contribute more to the financial success of the operations. Examples might include the CEO, leading sales personnel, or the head of product development. You may be able to think of others that fit this description for your own business.
What would happen to your business if one of these key players was no longer able to work either from disability or death? The loss of a key employee could lead to: loss of business, inability to continue operations and additional expenses as you begin the hiring and training processes.
Key Person Life Insurance
key Person Life insurance is a specialized product to protect businesses with crucial individuals. It can be purchased as term insurance or as universal or whole life insurance. The business will be the owner of the policy and pay the premium. The amount of coverage depends on the key person’s income and the overall business revenue.
Key Person Disability insurance
Key Personal Disability insurance is another product available for businesses. Key person disability insurance provides funds to the business when a key employee is unable to work. This policy helps the business recoup loss of revenue, hiring expenses and other related costs.
Losing any employee would cause a significant dent in your company’s morale. This would only be magnified if that employee was pertinent to the financial health of the business. The business is now dealing with concern over everyone’s financial well-being as well as the loss of a friend and co-worker. Can operations survive without the income that key employee brought in?
There can be many unexpected costs that arise when an employee leaves employment, especially when it is unexpected like in the case of a death or accident. One of the best ways is to protect the financial future of your business is through Key Person Life or Key Person Disability. Maybe both depending on your situation.
If you own a business, then reach out to our office today. We will work with you to ensure your business is protected from financial harm at the loss of a key employee.