Blog

Oct
24
Business Insurance California: Life Insurance For Key Employees

Sometimes a business becomes very reliant on a particular employee for its ongoing success, and in these instances business owners may find themselves in a difficult situation if that employee passes away. According to the Insurance Information Institute, a recent survey showed that 22% of businesses surveyed had “key person life insurance”, yet 71% said they were very were very reliant on one or two key employees for the success of the business. When it comes to business insurance, California business owners that have a lot invested in one or two workers or in a business partner should consider key person insurance.

These are a type of life insurance policy, with the business generally paying the premiums, and being the beneficiary at the same time. It is difficult to say how much the death benefit should be as it depends on a number of factors, including the individual’s financial contribution to the business as well age and health status. It may be necessary to calculate the amount the individual adds to the bottom line, and assess the likely cost to the company.

Are you considering including key person coverage as part of your business insurance? California business owners are welcome to discuss the advantages of this type of insurance with one of our agents.