What Happens to Your Company If You Lose a “Key Employee"?
Posted by Valley Insurance Associates, Inc. on Wed, Jan 18, 2012 @ 11:43 AM
When thinking about your commercial insurance & risk management program, it’s easy to focus on the building, contents, vehicles, and so on.
But what about your key people…business owners and other vitally important employees? What would happen to your business if one of these people passed away? Most firms have at least one person who is essential to the company’s success, and this risk can be addressed.
There is an easy insurance solution that can help…Key Person Life Insurance. The company can purchase the policy and be the beneficiary, thereby providing an infusion of tax-free dollars to help compensate for any potential loss of business during the transition, and to help with recruiting, hiring, training, and so on.
In addition to the risk of one of your key people passing away, there is also the risk of the person becoming disabled. Disability Insurance can be reviewed for these Key Employees, as well.
So we need to remember there are other “Key Assets” to consider when reviewing your commercial insurance & risk management program to help your business survive and thrive!
Mike Fitzgibbon is a guest writer for the Valley View Blog. He can be contacted via email at mfitzgibbon@viainsurance.com.