When you have one or two staff members who have skills that are vital to the ongoing operations of your business, the business could suffer major losses if anything happened to those people. You can prepare yourself for the worst possibility by adding key person coverage to the best business insurance PA has to offer.

Key person cover is a form of life insurance. The policy is held by the business and your business would be the beneficiary if you had to claim on the policy. It isn’t a regular component of a business insurance package – you have to add it separately. It’s essential to speak with the staff member concerned as you cannot take out a life policy on an individual without their agreement. They also need to be aware if they feel they need life insurance to protect their family financially, then they need to take out their own life insurance and name their family as their beneficiary.

In the event that the worst happens and you do have to claim on the policy, your business can receive a lump sum that may help you continue to meet your financial obligations while productivity may be down. It can also help you keep going during the interim period until you are able to find a new person to fill the role; or (if that isn’t appropriate under the circumstances) wind up the business.,

Adding key person cover to your business insurance package won’t protect your people, but it can help protect your business if you lose someone important to ongoing operations. You cannot replace the person you lost, but you can minimize the financial losses to your company.