What would happen if you lost the most crucial person to your business? Or even the second most key person? This person is usually the owner and/or possibly the person keeping the books or even just a productive salesperson. Without the skill, knowledge and talent of what that person does can begin to sink your company.
Key person insurance can help you survive that sinking ship by using the proceeds from the policy for things such as finding a replacement, pay off debts, possibly close the business, and pay severance to employees to name a few. Could save the company from bankruptcy.
Do not confuse this coverage with personal life insurance coverage. If your company is a sole proprietorship and you are the only employee, then key man insurance isn’t necessary.
Figuring out how much key person insurance you need depends on your business. How much money would your business need to survive while you find a replacement for that key person? Ask for quotes for several amounts and purchase the highest amount of coverage your budget will allow.
Call or come in today (Bloomington, Colfax, or Gridley) and speak with one of our friendly, knowledgable agents to help you decide whether this coverage could save your business and provide short-term cash in the event a tragedy strikes.