What is Key Employee Insurance?

Key employee insurance, also called key man insurance, is commonly purchased by companies to protect the organization in the unfortunate event of the death or disability of a leading sales person or important executive. Key employee insurance is an important tool that can provide stability to an organization that relies heavily on a few key contributors for the lion’s share of the revenue.

If you own a small business, the ultimate success of your company likely depends on one or two people that posses specialized experience or uncommon abilities. In the case of an unanticipated death or disability of one of these crucial talents, you need to know that your company can continue to operate without complete devastation. Key employee insurance will provide the immediate funds needed to soften the loss of a major contributor.

Key employee insurance, in general, is life insurance and/or disability insurance on the life of a top individual in your company. In many small businesses, this is usually the owner or founder of the company but could also be a marketing “rainmaker”, internet expert of other difficult to replace employee. These are the people who are crucial to a business—the ones whose absence would sink the company. You need key man insurance on those people!

For most small businesses, buying key man or key person insurance is a critical risk management strategy. In most cases, the cost of a key employee life insurance policy is a “drop in the bucket compared to the consequences of the death of a top employee. And, while key employee disability insurance is in most cases more expensive than key man life, the chance of one of your most valuable people becoming disabled and unable to work is significantly higher than death. For more information, call today at (877) 583-3955 or you can get a free key employee insurance quote NOW.

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