As a business owner, you know that your employees are key to your success. But what would happen if one of your key employees became unable to work due to an illness or injury, or even worse dies?
Key Person Insurance is a type of insurance that can protect your business from the loss of key staff. The coverage pays out when an employee dies or becomes unable to work for any reason, and often allows you to hire and train a replacement. It’s important to have this coverage in place so you are not left without the skills that one person brings to your business.
What are the benefits of Key Person Insurance
There are several benefits of key person insurance. First, it can provide your business with the funds it needs to continue operating in the event that a key employee dies or is unable to work. Second, it can help you hire and train a replacement employee quickly and efficiently. Third, it can give you peace of mind knowing that your business is protected in the event of a key employee’s death or illness.
How much does key person insurance cost
The cost of key person insurance varies depending on factors such as the amount of coverage you need and the health of the employees you are insuring. That said, it is typically a relatively affordable coverage option.
Who should have key person insurance?
Any business that relies on a key employee should have key person insurance. This includes businesses of all sizes and industries. Make sure you are fully protected by talking to an insurance broker about your needs.
Are there any exclusions or limitations to key person insurance?
There are a few exclusions and limitations to key person insurance. First, the coverage does not apply if the employee dies due to suicide. Second, it typically does not cover pre-existing conditions. Third, the coverage limit is usually £500,000 or less. Make sure you are fully protected by talking to an insurance broker about your needs.