In short, if your company is dependent upon one or more people for its long term success, the wise thing to do is to buy key employee insurance. Key employee coverage is the most inexpensive way to guarantee that your business can continue if one of your top people is hurt in an accident, sustains a debilitating injury or dies. Below are some of the most important reasons to buy key person insurance.
- It provides a “cushion” or cash infusion to the company to “buy time” until a key executive could return to work (disability) or be replaced (death).
- Finding a capable replacement for a key employee can be difficult. Key person insurance provides the funds needed replace the skills and experience required to maintain and grow the company’s financial position without having the devastating affects of short-term revenue issues.
- Key employee insurance helps to protect valuable client relationships and large accounts. If your CEO suddenly not available to “massage” the relationships he or she has established, what might that do to your bottom line?
- In many instances, key person insurance may be a requirement for loan indemnification. Banks and other lenders want to know that if something happens to a key person in the company that funds will be available to meet obligation. The may ask for this insurance to collateralize a loan.
- Key employee insurance, or key man insurance in this case, is often used in planning for a buy-out. Key man life insurance has long been the perfect vehicle to fund a buy-out of a deceased partner’s estate.
There are many more reasons small businesses should own key employee insurance but the above are the most common. The bottom line is that the cost is not excessive and the peace of mind that comes with knowing your business is protected cannot be overemphasized. If have any question as to whether this insurance may be right for you call TODAY at (877) 583-3955 or get an instant key employee insurance quote now!