Having the right business insurance in place protects you, personally, from loss. It also helps to keep your business operational.
In every situation, a business owner should plan for risks. When buying insurance, think about what factors could limit your company’s success. It’s not always easy to determine this. And, most do not think about the owner’s death as a potential risk factor.
Your Assets Have Protection
Under property insurance, your assets gain protection from theft, storms, and other risks. Under liability plans, your business has protection against lawsuits filed against the company.
In these instances, your company can go on even if something like an accident or a fire occurs. In fact, most companies carry business interruption insurance to minimize loss during closures. But, what about you, the owner?
The Owners’ Value
Could your business operate and maintain operations if you were not there? It’s a tough question to ask and something most do not want to think about. However, the bottom line is that every owner is vital to the company.
Key person insurance is a type of business coverage that can help minimize the financial blow the company experiences if the owner dies.
What Is Key Person Insurance?
In some cases, a small business can survive through a traditional life insurance plan. The owner’s life insurance plan can help to fund the continuation of the business. However, key person insurance is more specific to support to the company whereas life insurance tends to focus on the family’s needs.
Businesses typically place key person insurance on specific employees. You can obtain a policy like this for almost any essential employee. If something should occur and that person dies, the policy usually pays out a benefit to the business.
Key person insurance works to help cover the lost sales related to a death. It can help to reduce any losses resulting from the death of that individual.
With the right type of business insurance, a company can go on in many situations. Work with your agent to determine who, beyond the owner, may need to have coverage.
We can help you get a fast, free New York business insurance quote. If you’re ready to get started, call us at 914.273.8511 now.