Posted on May 17, 2014
In every business organization, there are owners, managers and directors that are critical to the company?s profitability and growth. These key people enable the ultimate success of a company and are quite impossible to replace. Should this individual or individuals become seriously ill, disabled or even die, their absence leaves a gaping operational hole that can drastically affect the company.
For this very reason, key person insurance was developed to provide protection to companies when key personnel are no longer able to perform their duties, no matter the reason. This insurance protection can be customized for each company?s unique needs, and typically the coverage extends to the following issues:
Ultimately, key person insurance protects businesses from the loss of valuable owners or other personnel. Its purpose is to keep the company running by funding expenses associated with finding replacements and covering temporary deficits due to the valuable person?s absence. Combined with disability insurance for the key person, a company can have vital protection for both its operations and their key employees or owners.