Key man insurance is part of successful business planning.
How much key man insurance do you need?

In a nutshell, here are the problems that you could experience after losing a keyman employee, without the protection of key man insurance:

• The weakening of your company's credit rating
  Your keyman is akin to your firm's "right arm." Banks, investors, and financial analysts will be concerned with your business's future, when your keyman is lost. Likewise, suppliers and customers will need reassurance that your operations will continue without interruption.
• The distraction of your other employees
  The sudden loss of a keyman is shocking to your other employees, who typically lose confidence in your business's financial viability. Morale deteriorates; deadlines are not met; personal conflicts increase - all contributing to higher employee turnover.
• The requirement to meet your prior financial commitments
  You must fulfill financial promises made to the keyman's family-such as salary continuation or deferred compensation.
• The need to find, hire, and train a replacement keyman
  You must bear the financial cost (both in time and dollars) associated with this difficult process.
• The lost business opportunities
  Without key man insurance, your cash reserves are exhausted meeting the above needs. This leaves insufficient funds to invest in new business opportunites, and business growth is at risk.

Please keep in mind that there are a number of possible reasons for the loss of your key man. Insurance can protect you in multiple scenarios. For example, unexpected death is an unfortunate reality.

All in all, your keyman value is an important consideration, when determining your financial assets and business continuity.

Please, remember to consult with a qualified professional, to confidently protect your business with a key man insurance package.

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