Key employee insurance is something your bank may require proof of before approving a small business loan. It covers the business’ financial losses when a key employee is disabled or dies. This person may be “key” because they are the owner or founder of the company or because they are the primary contact person for customers and suppliers. Compensation can be used to hire or train a new person to take over the job. Of course if the only person who knows the “secret recipe” dies, you may be in trouble.

That dog's a liability.

The Key Insurance policy is usually held by the company, which means they pay the premium and collect the money should a claim be processed. However, a separate life insurance policy would need to be taken out in order to compensate the employee’s family. Call us today to discuss your company’s insurance needs.

Advertisements