HAWK Advisers hosted a seminar on August 23, 2017 on “Protecting Your Business” from potential disasters such as financial threats, workplace violence, and cyber-crimes.
How can you protect your company from the loss of an essential employee?
By making it a priority to have a plan in place. Although insurance will never replace a person, it will take a major concern away from employees and family due to a loss or a disability.
This post will focus on one plan available to protect a business’s finances—key man life insurance.
Robb Stottlemyer from Keystone Financial Services spoke about life insurance policies that businesses can put into place to protect against death or disability from a “key man” in your company.
Who is a key man?
A key man is anyone within a company that would be a detrimental loss if they were to resign, become disabled or pass away.
Key man insurance plans cover the life of an employee who is critical to the success and profitability of your business. These plans provide a simple, efficient way to help protect your business.
For example, we all know Apple, and we all know Steve Jobs –he was a “key man” to that company and Apple’s innovative technological releases. It is likely that your business values a “key man” like Apple valued Steve Jobs. Whether that is the CEO, top sales person, or someone that comes to top of mind as a devastating loss.
Key man insurance is either life or disability insurance on key people within a business. Key man insurance is purchased by the company to benefit both the business and the employee.
If you have key man insurance in place and one of your key employees dies or is disabled, proceeds are payable to your company, usually tax-free and can be used to hire a capable replacement and also keeps the business functioning.
There are many insurance options available for businesses, talk to your local independent insurance adviser to see how they can help you defend against financial threats.