Key Man Insurance
Key Man & Key Person Insurance
Key Man insurance, also known as Key Person insurance, is an integral component of business and business insurance. A Key Man Insurance policy is purchased by the business to compensate for the financial loss that occurs from the death, disability, or incapacity of an important person in the business. With Key Person Insurance, the company receives the insurance benefit.
Pibal Broker Tip: The goal of Key Person Insurance is simple: to help the company survive when the key person who makes the business work passes away.
Ensure your company’s health.
We can help you explore the options for the Oregon Business Insurance you need.
Why Buy Key Man Insurance?
The main reason why businesses obtain Key Person Insurance is to financially compensate the business for losses and to keep continuity in its operation should an unfortunate event happen to a “Key Person” within the company. Key Man Insurance does not cover the actual losses incurred but provides an immediate monetary sum (as specified on the insurance policy).
Employers will obtain Key Person Insurance on the life (or health/disability) of an employee whose skills, contacts, or knowledge is considered valuable to the prosperity of the company. Employers obtain a Key Man Insurance policy to offset the high costs associated with hiring replacement help or recruiting a uniquely qualified successor. The Key Person Policy is also used to offset losses (of income, time, and assets) until a qualified successors can be hired AND properly trained.
Please call or contact our offices for a more detailed conversation. We offer free quotes with a simple, no obligation approach. If you would prefer, we can even work directly with your CPA or lawyer to design a plan to fit your business requirements.