If your business doesn’t have key man coverage, you may be exposed to more liabilities than you realize. What if a key person in your company left abruptly due to disability or untimely death? How would your business be affected? Key man insurance coverage can help your business stay on track during the transition and maintain your business’ security.
Learn more about what key man insurance is, and how it may be able to help protect the future of your business!
- This type of policy helps assure that the business continues despite the absence of a key member. This peace of mind and security is essential for other employees, as well as any clients, customers, and lenders.
- One feature of key man or key person insurance is a death benefit payment, which can be used to help your business through the difficult time after losing a major person in your business.
- Recruiting and hiring a new person to take the place of the previous key employee often involves substantial time, money, and effort. This process can have less of a burden on the business through the right kind of key man coverage.
- A key person insurance policy may give potential creditors and lenders more confidence in your business’ stability, and therefore may be willing to invest more in your company.
- Depending on the policy, some cash may be available to your business as a withdrawal for a loan during this transition period.
- Various key members of the company can be covered, not necessarily just the CEO or other top executives. For example, it your business would suffer due to the loss of your leading salesperson, it would be a good idea for your business to get key man coverage for this employee.
- This type of policy is different than life insurance or disability coverage! Since this policy is purchased in order to protect the business, not the individual employee, the business would be the beneficiary.
Would your Massachusetts business be directly impacted due to a sudden loss of a top employee? If so, contact an insurance agent in your area in order to learn more about how a key man insurance policy would benefit your business.