Along with the standard small business insurance of property and liability, with any other coverage to suit your needs, have you considered taking out key employee insurance in addition to your regular Florida commercial insurance? Small to mid-size firms may lean heavily on one or two employees or owners who carry out central duties, particularly if the company is a recent startup. Reliance on a particular person may expose you to hardship and even business failure if they were to pass away unexpectedly or become seriously disabled by injury or illness. In some cases the firm may not be able to operate for a period of time, or may be forced to close down.
Key employee insurance is taken out by the company on the life of an individual and, like life insurance, is paid out on the untimely death of the employee. The aim of the insurance is to aid the business to cope with any loss of earnings incurred by the death of the employee and the possibly significant amount of time and money taken to train their successor. It can also be used, in conjunction with a buy-out agreement, to help ensure that a deceased person’s interest in the business can be bought out by the remaining business partner.
Should your company be in a situation where the loss of one or more key staff could seriously damage your business, consider taking out a key employee insurance policy. Talk to one of our agents for more information on this subject or on Florida commercial insurance in general.
Image courtesy of Jmorganmarketing.com.