Are Your Key Employees Covered?
With the current economic climate putting so many companies on the verge of financial freefall, all it takes is one shove to send a business over the cliff. Losing a vital employee is one of many disaster scenarios that could impact your company at any time. Is there a way to protect your company if a key employee dies or becomes disabled?
Actually, there is. Key person or “keyman” insurance has been around for a long time. It’s used in partnerships, small businesses, and large corporations. But most companies (even those who know this is an insurance option) don’t have a policy in place. In a recent survey from the UK, KeyMan Insurance found that 6 out of 10 companies knew their business could be ruined by the loss of a key employee. But only 6 out of 100 had a policy in place to provide a financial cushion if that happened. In contrast, 27% had insurance on their office equipment.
What would you find more difficult to replace, a photocopier or your CFO? That’s something to think about as you review your business insurance policies for 2012.Tags: business, insuranceBusiness