What Is Key Person Insurance?
Many businesses rely heavily on one essential person to manage their daily operations, and these businesses would be unable to function without this person fulfilling their role. Key person insurance helps Massachusetts businesses financially prepare for the possibility that an essential person is unable to work due.
Key person insurance is a specialized type of commercial insurance, and businesses would be wise to work with a specialized agent when selecting a policy. An essential person’s financial value should be carefully determined and potential scenarios should be carefully considered. An informed agent can help with both of these items, and an agent can make a wise policy recommendation based on those considerations.
What Massachusetts Businesses is Key Man Insurance Right For?
Many Massachusetts businesses may benefit from key man insurance. Businesses in any industry and of any size may want a policy if they rely heavily on one or a few essential people.
A few examples of businesses that might consider this type of policy include:
- Small businesses run by an owner
- Large corporations with C-level executives
- Businesses that rely on a knowledgeable and skilled employee
- Businesses that couldn’t easily replace employees with temporary workers
In select situations, this insurance might even be required by a lender before the lender will approve a business’ loan.