Protect Your Business From the Loss of a Key Employee
Is your business protected if the unexpected happens and one of your key employees passes away?
Protect Your Business from the Loss of a Key Employee
Many businesses have one or two people they can’t do without. Maybe they’re co‐founders. A top sales leader. Or an all‐around MVP who runs daily operations. No one likes thinking about worst‐case scenarios.
But what would happen to your company if you or one of your right‐hand people suddenly died? The fact is … losing a key employee is more common than experiencing a natural disaster or fire. And the results can be devastating.
Six out of 10 owners recently told the Small Business Council that the loss of a star performer could lead to business failure. Fortunately, a special type of insurance coverage exists that can protect your business in situations just like this.
Key‐employee insurance provides a financial cushion, buying the company time to reduce the potential disruption. It works like this: Your business purchases a life insurance policy on a single employee or group of employees. It pays the premiums and is the beneficiary in the event of an employee’s death.
As the policy owner, your business can use the death benefit as it sees fit. For example, proceeds can fund recruiting and training of a successor. Or offset a sales or profit dip you experience during the transition. And even more. So, safeguard the business you’ve built. Learn how key‐employee insurance can work for you.