This specialized form of insurance means that the business is the beneficiary of the plan, not the owner of the business. Key person insurance is meant to provide a safety net for a business in case of an uncertain future. As a business owner, a key person insurance policy is one of the easiest steps that you can take to financially protect your business.
Any person who is closely associated with your business can be protected with a key person insurance policy. Since key employees have some degree of influence on how a business performs and operates, their loss could have a serious negative impact on the business. A key employee can include a president, project manager, important key sales person, top level manager, or employees whose services and skills are valuable to the operation of your business.
It is important to keep in mind that key person insurance will not replace the person in your business, but will help to protect your business in case of a total financial loss. This means that you have the ability to maintain your business continuity despite the absence of a key employee because your potential losses will be compensated by your key person insurance plan.
When looking for the right key person insurance plan to protect your business, contact the insurance professionals at Sackett & Associates Insurance Services in Sonoma County, California. As an independent insurance agency, we will work with you to ensure that you have the right amount of coverage, all at the right price to fit your budget.