With a key person insurance policy, the business buys a life insurance policy on the life of each key employee. The company pays the premiums to keep the policy in force, and is named as the beneficiary of the insurance proceeds. If the insured person dies, the company can use those funds in whatever way they choose. This can provide an option other than bankruptcy. The amount of coverage you purchase will be highly individual, and should be specific to your business’ anticipated needs.
Key Person / Business Insurance
If your business depends heavily on the contributions of any specific employee or partner (including you), your business would likely suffer a heavy blow if that employee was to die unexpectedly. This is especially true for small businesses that might struggle more with finding available cash to be able to continue operations while getting someone new in position and up-to-speed.
Did You Know
No matter what type of business you have, you need insurance coverage to protect yourself, your business partners, your employees and your customers. Christopher Ferguson Insurance LLC offers a range of insurance products tailored to meet each individual business owner’s needs, goals and budget.