You Insure Your Property and Equipment. What About the Person Who Drives the Business?

 Does your company depend heavily on a top salesperson, operations leader, technical expert or employee with critical customer relationships?

Ask yourself:

• Who generates a significant portion of your company’s revenue? 
• Who owns the relationships with your largest customers? 
• Who has knowledge or expertise that would be difficult to replace? 
• What would happen to revenue if that person died unexpectedly? 
• How long would it realistically take to recruit and train a replacement? 
• Could major customers follow that relationship somewhere else? 
• Would lenders, suppliers or employees lose confidence in the business? 
• Could the company absorb the financial hit while it recovered? 
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You can replace damaged equipment.

Replacing years of customer relationships, industry knowledge, technical expertise and revenue production can take months—or years.

For some companies, one employee may be responsible for a disproportionate amount of revenue or hold relationships that are extremely difficult to replace.

Key-person insurance can provide cash to help the company:

• Offset lost revenue during the transition 
• Recruit and compensate the right replacement 
• Protect important customer relationships 
• Maintain payroll and operating cash flow 
• Meet loan payments and other financial commitments 
• Give management time to make good decisions instead of rushed ones 
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The loss of a key employee is already a major business disruption.

Do not let the loss of the person also create an immediate cash-flow crisis.

Bring a list of the people your company depends on most, what they are responsible for and any existing insurance.

In 20 minutes, Fusion can help identify who creates the greatest financial exposure, what their loss could realistically cost the business and whether your existing protection reflects that risk.

Key-person insurance needs and appropriate coverage amounts depend on each company’s circumstances. Coverage is subject to eligibility, financial and medical underwriting, insurer guidelines and policy terms. This information is for general educational purposes and is not legal, tax, accounting or valuation advice.