Key Person Insurance

 

Most people are aware of the need to insure against property loss or damage, but what about the threat to your most valuable human resource – you, and the people who are vital to the continuing success of your business? The loss or temporary loss of key personnel can have a dramatic effect on any business, and can even be terminal.

In most businesses there are key people, whether in management or in other areas, and the loss of the services and expertise of these people through death and disability, will place an extra burden on the financial resources of a business. Since replacements for these key people may have to be headhunted from current employment, there is a capital cost involved and often an increased salary/cashflow cost as well.

Each employee or principal who provides key services to the business can be insured for death and disability, for an amount equal to the value of their loss to the business.

 

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