Key person insurance a ’sensible choice’
Flourishing businesses can be hit hard if their key man or key person leaves, it has been suggested.
According to the Economic Times, the sudden departure of key professionals from a growing organisation can have a negative impact on its future prospects, making key man insurance a sensible consideration.
Because of their specialised skills, foresight and business acumen, a key man or key person is relied on to bring greater revenues, profits and brand-value to a firm.
"Simply put, key man insurance is a corporate-owned life insurance cover on key person/persons in a business – directors, key sales persons, key project managers or any person holding substantial responsibility and contributing significantly to the fortunes of that organisation," explained the financial publication.
When a company invests in a life insurance premium on a key employee, it becomes the beneficiary of the policy if that person dies unexpectedly; this arguably makes key person insurance invaluable for helping a company survive the blow of losing someone who "makes business happen".
Gersten Savage, one of New York’s top five independent law firms, recently highlighted that key man insurance is one notable aspect of a growing interest in best practices displayed by business managers.
The Insurance Helpline specialises in obtaining cover for people living with medical conditions
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