Published: September, 2022
There is vulnerability to market forces, competition, and even consumer behavior. These are unavoidable and there is protection. Yet, most important when a company grows it relies on particular individuals because of their expertise in certain positions. While employees are expendable there are particular employees so valuable you cannot afford to lose them.
Protecting the business is crucial and there are mitigations available if you know what they are.
For business owners, insurance doesn’t just provide peace of mind. In a lot of cases, that insurance is a legal requirement. As a business owner, how can you be sure which insurance policies you need? How do you combine affordability with adequate coverage? Well, you can always talk to a financial professional.
In this Finance Course, we will discuss different insurance solutions for business owners.
Key person insurance is a life insurance policy that a company purchases on the life of an owner, a top executive, or another individual considered critical to the business. The company is the beneficiary of the policy and pays the premiums. It offers a financial cushion if the sudden loss of a certain individual would profoundly negatively affect the company's operations. The death benefit essentially buys the company time to find a new person or to implement other strategies to save (or shut down) the business.
In a small business, the key person is usually the owner, the founders, or perhaps a key employee or two. The main qualifying point is whether the person's absence would cause major financial harm to the company. If this is the case, key person insurance is definitely worth considering.
In this CPE webinar speaker, Drew Stevens will help you to understand the premise behind buy-sell and key person insurance.
MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478
MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.
CEO and Leadership Change Expert, Stevens Performance