Do you have Key Person Insurance, and do you need it?

When did you last have a good look at your business and the New Jersey business insurance policies you have to protect it financially? How has your business developed over time? Do you have all the insurance in place that you need, or are there ‘gap’ areas in your coverage?

One type of insurance you may not have considered, but which could be very useful if you have an individual or individuals who are critical to the ongoing productivity of your business, is ‘key person insurance’. This is a form of disability and/or life insurance where the company is both the policy holder and the beneficiary if a crucial staff member becomes disabled or dies. This insurance may provide the financial assistance needed during the interim period between the loss of the key person and finding someone to replace him/her, and may also be used for business income-stream replacement. 

You would need to discuss this with your colleague or staff member prior to taking out a policy as you would need their agreement to take out the policy. This type of policy is often also used to cover the life of a business partner. 

Do you need more information about key person insurance or other New Jersey business insurance? For more information or to arrange a quote contact one of our agents.

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