Keep the business on track. No matter what.
What is key person insurance?
Key person insurance is business-owned coverage on an essential individual. This can include a founder, executive, top salesperson, lead engineer, or relationship owner. If that person dies or becomes disabled, the benefit is paid to the company to help offset lost profits, fund recruitment and training, reassure lenders and investors, and stabilize operations.
How does it work?
The company owns and benefits from a life insurance policy, which can include disability coverage. Benefit amounts are based on the key person’s impact and the financial risks to be covered. Proceeds are paid to the company upon a covered event, according to the policy terms.
Who is it best suited for?
Organizations of any size where knowledge, relationships, or production are concentrated in a few people. It’s especially useful for venture-backed companies, professional practices, firms with material client concentration, and businesses with lender or investor requirements tied to key personnel.
Key components of a
key person risk plan
Ensure liquidity to handle the departure of a pivotal team member, while maintaining growth and honoring commitments.
Safeguard your business continuity
Identify exposures, size coverage, and align stakeholder. Reach out for a quick discovery call.