Protect Your Key Employees

Though you may not give it much thought, the success of a business usually centers on the efforts of a few key employees. These key employees may be developers at a software company, designers at a clothing company or general executives across a variety of companies. If one of these key employees were to fall ill or pass away, the daily operations and profitability of your business may falter or even fail. To protect against such a monumental loss, consider key employee insurance, which offers both disability and life coverage.

Most individuals have a higher risk of becoming disabled for three or more months before the age of retirement than they do of dying before the age of retirement. Many people buy life coverage for key employees, but disability coverage is just as, if not more, important than life coverage. Whether a disability removes a key employee from office for a few months or permanently, the effects of his or her absence are likely to be noticed quickly.

Key employee insurance, of which the business is the owner and beneficiary, is designed to compensate a business in the event that a key employee can no longer work for any amount of time. It can cover the expenses associated with finding and training a replacement, along with profit losses that result from the absence. Though owned by the business, the employee’s consent is still necessary before such a policy can be purchased.

Your independent agent will evaluate the needs of your business, largely based on key employees’ roles, ages and overall health. This helps determine how much and what type of coverage you need. Your agent will then shop for policies on your behalf and deliver several options for you to select from. Get the peace of mind that comes from knowing that, come what may, your business is protected.