There are several types of insurances relevant to businesses and as this is such a critical area where you should seek professional advice to ensure you have the right mix for your business. One such cover is Key Person Insurance:
Key Person Insurance
Like your family, would your business be able to carry on should you die? The loss of a key person’s knowledge base, recall of business history and transactions, processes and personal network could have a catastrophic impact on the business. It would not be able to proceed at the level it was operating at and most likely the success and profitability of the business would suffer.
Key person Insurance provides the business with a lump sum should someone with a critical role die or become incapacitated. The payout could cover hiring interim employees or the significant costs associated with recruiting senior people.
Also consider if there is a Buy/Sell agreement in place. Should a key person in a firm die (for example a Partner) then the other Partners have the right to buy the deceased’s shares. A payout could provide the necessary funds for this.
At Grand Ridge Financial we research all the products from all the insurance firms and present you with the solutions that best suit your business needs.