Insuring the Key Person Makes Business Sense
Replacing a key person in a NH business is an expensive proposition. A medium or small business might only have a few people in management positions; or a business owner might do everything for the company; or a person might have a particular skill or knowledge that the whole company depends upon. If something should happen to that person then the results can be disastrous for the company.
The time to think about carrying insurance on a key person in your company is right now. Review your staff and think about what they bring in terms of potential revenue and ask how easily can they be replaced? If it's an owner or a partner there might be other considerations that involve legal and accounting services that can dig into the company's profit margin. What about lost clients? Lost confidence in the company? Recruiting a similar candidate?
Planning for the impact of the loss of a key person at your company is just good business sense. Business owners take out insurance on their property, their vehicles, their machinery, but those are typically easily and quickly replaced. A key person is a irreplaceable commodity with long range affects on the performance of a company.
The cost of carrying a policy on one or more key persons in your company is very reasonable given the risks that come with their loss. There are number of ways we can help you calculate the amount of money you'll need to get through a transitional period.
Key Person Insurance is a prudent business move that can protect a company from a possibly devastating economic impact if they should lose a vital member of the company. The conversation starts with a phone call or an email. Colby Insurance (603) 526-2451
Call us to talk about your insurance needs at 800-392-6532