Key man insurance is life (and occasionally disability) insurance on specific key employees. These key employees typically would be the founders, owners, or important executives – those who are crucial to the company’s long-term viability.
Unlike personal life and disability insurance, the business buys a key man policy, pays the premiums, and is the beneficiary. The business receives the insurance payout if the insured employee passes away.
Why You May Need Key Man Insurance
Many businesses, especially those that are small or medium in size, significantly rely on one or two key individuals. Not only can the loss of that person affect employee morale, but it could also have a significant financial impact, in addition to having an impact on the morale of the workforce. The business owner, partners, or key executives are all examples of key employees.
When determining whether you need key employee insurance, consider the impact of the loss and how it would change the success and performance of your business.
Financial Security for Your Business
Business owners frequently factor in their loss, if an executive is sued. They will purchase coverage for that kind of incident. They frequently fail to consider the possibility that the company would not make it if one of its main figures were to pass away unexpectedly. Key man insurance is just one of many insurance options your business needs to consider.
If you’re interested in key man insurance coverage for your business, please give our office a call or visit our quotes page today.