When it comes to business continuity planning, most companies think about property insurance, liability coverage, or even key person life insurance. But what if your top performer, chi-f developer or managing partner was injured or became ill for several months or possibly years<\/p>\n
In such a case, this is where key person disability insurance coverage<\/strong> comes in. Key person disability insurance is a business insurance designed to protect a business financially should its key employee become disabled and unable to perform their job functions.<\/p>\n Personal disability insurance provides benefits directly to the disabled insured, this type of coverage pays directly to the business to offset revenues, hire temporary personnel, or reunite extra operating costs during the absence of that individual.<\/p>\n Not every employee finds a place for themselves under this coverage. A “key person” is often understood to be a person whose skills, knowledge, or relationships to the success of your company. They might include, for example:<\/p>\n
\nThis policy often overlooked could be the safety net your business needs for survival during the temporary (or permanent) absence of a key team member. Let’s further illuminate this.<\/p>\nWhat is Key Person Disability Insurance?<\/h2>\n
Who Qualifies as a “Key Person”?<\/h2>\n