Key Person Insurance

Key Person Insurance, or Keyman Insurance, can protect important members of your business. It will compensate you for financial loss due if the person you are insuring is unable to work for any reason. Key Person Insurance is especially important if you own a smaller business. Having a manager becomes sick, becomes injured on the job can do a lot of damage to a small business, or dies suddenly. The same is true for new businesses and highly specialized businesses that rely on specific people who know what they’re doing.

Key Person Insurance is not meant to protect your employees. You will need to include disability insurance in your employee benefits package. No, Key Person Insurance is meant to protect you and your business.

Here are some questions to ask your insurance company before purchasing Key Person Insurance:

  • How much insurance do I need?How much insurance you need will depend on different things, such as how big your company is, who you are insuring, and how important that individual is to your business. Your insurance agent will be able to assess your needs and help you decide how much insurance you need to purchase. Remember to err on the side of caution. You don’t want to have to pay too much, but you also don’t want to not have enough protection.
  • Who should I include under the policy?How much insurance you need will depend on different things, such as how big your company is, who you are insuring, and how important that individual is to your business. Your insurance agent will be able to assess your needs and help you decide how much insurance you need to purchase. Remember to err on the side of caution. You don’t want to have to pay too much, but you also don’t want to not have enough protection.
  • What will the policy cover?How much insurance you need will depend on different things, such as how big your company is, who you are insuring, and how important that individual is to your business. Your insurance agent will be able to assess your needs and help you decide how much insurance you need to purchase. Remember to err on the side of caution. You don’t want to have to pay too much, but you also don’t want to not have enough protection.
  • How much will the insurance cost?You shouldn’t have to empty your pockets for Key Person Insurance. Insurance companies usually offer a variety of discounts to their customers. You may be offered discounts based on your business’ location, size, specialty, etc. Your insurance agent should be able to walk you through the different discounts available to you. Make sure to take advantage of every discount.
  • How much will the insurance cost?It’s crucial that you understand your insurance company’s claims process. Ask your agent who is supposed to make the claim, who you are supposed to call, what information the insurance company will need, what the next step will be, and how long the entire claims process will take. Write this information down and keep it in a safe and easily accessible place.

The professionals at SOGO want to make sure that your business is prepared for the unexpected. Don’t wait until it’s too late to look into Key Person Insurance. Contact us today.