Everyone in the current day and age is fully aware that businesses depend entirely on their employees to operate.
This is perhaps even more the case when it comes to startups and newer businesses, where every single individual plays a core role that’s needed to get things off the ground.
While a lot of entrepreneurs will have at some point been concerned about what they’d do if they were to lose one of their key players, not everyone will be aware of the solutions available to help protect against such events. One solution you need to know about is keyman insurance.
What is keyman insurance?
A keyman insurance policy is a form of insurance that’s designed to give financial protection to businesses, in the unfortunate case that they lose an employee who facilitates an important function.
That loss can either be permanent (such as in the case of death or severe disability) or long-term (such as in the case of a chronic illness). The exact details of the policy will differ from business to business, depending on how the business operates and how they choose to define the terms.
Keyman insurance can be invaluable for businesses of all sizes, but it’s perhaps especially beneficial for smaller businesses, which have a heavier reliance on a smaller number of key individuals. Key players can be defined in a number of ways – they may be founders and executives, or they could be employees who carry out an essential role that would be incredibly difficult to replace.
Why might your business need keyman insurance?
Now we know a little more about what keyman insurance actually is, let’s explore how it could benefit your business.
It provides financial protection
Perhaps the most obvious benefit of keyman insurance is that it protects against financial loss. For many businesses, especially those still in their start-up phase, losing a key player can have absolutely devastating effects on the ability of the business to operate. While businesses can help to spread…
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