Your office equipment and inventory are valuable assets, but are they as valuable as your key employees? Consider a top salesperson who is unsurpassed at bringing in revenue or new accounts, or a researcher whose innovative ideas have helped the company flourish.
Key employees may be your most valuable resource. Their energy, expertise and dedication can give you an edge over your competition and enable your business to succeed. What would happen if one of your key employees died or became disabled?
Profits could be affected and you might be forced to absorb the high costs associated with recruiting, hiring and training a suitable replacement.
You can't guarantee the continued good health of your employees, but insurance on the lives of your company's key people can help prevent an unexpected loss from financially harming or even destroying the business that you have built with the help of these valuable employees.
Key person insurance provides life insurance or disability benefits to your company if it suffers the loss of a key employee. A key person is anyone associated with your business whose unique talents make a significant contribution to your bottom line, such as employees with:
As the owner, you and other shareholders of the business may also be key to the operation of the business.
Key person insurance can help protect your business in many ways.
Take a few minutes to go over this checklist. It will help you identify the value of your key person and how this loss could impact your business.
Will the loss of your key person impact the company financially?
Your Edmond Financial Group financial security advisor can work with you to help determine the impact of the loss of a key employee and implement key person insurance as part of your business succession plan.