Key Person Insurance
Your office equipment and inventory are valuable assets, but are they as valuable as your key employees? The energy, expertise and dedication of your key employees can give you an edge over your competition and enable your business to succeed. Consider a top salesperson who is unsurpassed at bringing in revenue or a researcher whose innovative ideas have helped the company flourish. What would happen to your business if an employee like that died or became disabled? Profits could be affected, and you would likely face the high costs associated with recruiting, hiring and training a suitable replacement.
Key person life and disability insurance provides tax-free funds 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. This may include employees with special technical skills, strong relationships with valued customers, skills in attracting new business or responsibility for major projects. The business owner and other shareholders of the business may also be key to the operation of the business.
When working with you to determine the value of your key person, we ask these questions:
- Will the loss of your key person impact profits? If so, for how long?
- Will there be a cost to replace this person?
- Could this loss impact your company’s credit?
- Could you lose key clients?
- Could you lose other employees?