Everyone knows one person who is an indispensable resource to their office. This person knows nearly everything about the business and represents a collaborator that is difficult to replace. What would happen to your business if this person was lost? Are significant financial losses inevitable? How is the business expected to run correctly without them?

One thing is for sure: your business may suffer without this personnel, but did you know that there is a way to protect your organization? Key-personnel insurance may be the solution!

So, what is key-personnel insurance?

Key-personnel insurance is a form of life insurance or disability insurance applied to a key person in the business. This protection is important for optics or for the reorganization of the enterprise as a result of the sudden absence of this resource, which may lead to additional expenses or important revenue losses for the company.

This type of insurance can be applied to workers of different organizational levels, such as:

• The owner of the business

• Essential leader to the functioning of the firm

• A vital employee to the organization

In the absence of these key persons, the business wouldn’t be in a position to function correctly. The organization could lose important revenue, or risk losing out on important opportunities!

Why subscribe to this type of insurance?

For some businesses, knowledge and intellectual property are concentrated within a few individuals. This situation makes the functioning of the firm vulnerable to the departure of these individuals. Small businesses are a typical example of these types of enterprises.

Key-personnel insurance will allow you to protect your business from the financial risks associated with the loss of these key persons. If an emergency occurs, your business could obtain the funds needed to continue activities as usual.

Want to know more about key-personnel insurance? Contact your financial advisor.