As a general rule, small companies tend to have fewer employees doing a wider variety of work tasks compared to their larger competitors. A situation may develop where one or two people end up with a number of key tasks. This may mean the financial well-being of the firm may be put at risk should the key employee or employees become permanently disabled and unable to continue with his or her duties. A key employee insurance policy works in a similar way to a life insurance policy, except that the benefit is paid to the company.
Taking out key employee insurance in addition to your other Massachusetts insurance for your business may help by covering costs incurred in the replacement of the key person. It can also provide compensation for lost earnings. Training a new worker, or workers, to take over the duties of the key employee may take some time and the company may need to adjust to the new situation. The financial compensation paid may help give some coverage for these costs. Talk to us for further information on this type of insurance.
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